8th Pay Commission: Will Central Employees Receive Arrears From January 1? How Much Does the Government Save on HRA?

New Delhi: With the 8th Pay Commission now formally constituted, anticipation is rising among central government employees and pensioners. The key question remains unanswered: Will the revised pay and arrears be implemented from January 1, 2026?
While the government has hinted at the possibility, no official confirmation has been issued so far. Employee unions and political leaders continue to press for clarity, a demand that echoed even during the ongoing Winter Session of Parliament.

During a recent Lok Sabha session, four MPs questioned Minister of State for Finance Pankaj Chaudhary about the implementation date. In response, the Minister refrained from specifying any timeline, stating only that the government will decide the effective date and make adequate financial provisions to implement the approved recommendations.

Will Arrears Begin From January 1, 2026?

As per the Terms of Reference approved in November 2025, the Pay Commission has been given 18 months to submit its report. Experts believe that post-submission, the government may take another 3–6 months to approve and notify the recommendations.

Historical precedents suggest that employees have typically received arrears from the date marking the end of the previous pay cycle:

• 7th Pay Commission: Implemented in June 2016; arrears paid from 1 January 2016
• 6th Pay Commission: Approved in August 2008; arrears paid from 1 January 2006

Whether the government will follow the same pattern this time or opt for a new approach remains to be seen.

Why HRA Arrears Are Not Paid — And How Much the Government Saves

According to Manjeet Singh Patel, National President of the All India NPS Employees Federation, the government should, “as per technical procedure, pay arrears from January 1, 2026.”
However, he points out that HRA arrears are never paid, which helps the government save a substantial amount.

Patel explains the calculation using an example:

• Basic Pay: ₹76,500
• Current DA (58%): ₹44,370
• HRA (30%): ₹22,950
• Total Salary: ₹1,43,820

From HRA alone, the government saves approximately ₹18,360 per month by not paying arrears.

Projected Salary Under the 8th Pay Commission

Assuming a fitment factor of 2.0, the revised salary structure may look like this:

• Revised Basic Pay: ₹1,53,500
• DA: 0% (as DA restarts from zero after pay revision)
• HRA (27%): ₹41,310
• Total Revised Salary: ₹1,94,310

Arrears Calculation (per month):

• Without HRA:
  ₹1,53,500 − (₹76,500 + ₹44,370) = ₹32,130
• With HRA:
  ₹1,94,810 − ₹1,43,820 = ₹50,990

Government’s monthly savings on HRA arrears:
₹50,990 − ₹32,130 = ₹18,360