ABP Live Your Money Your Life | 8th Pay Commission Alert: Key Reasons Govt Salaries Haven’t Increased Yet

Millions of central government employees and pensioners expected their salaries and pensions to increase in January. Discussions intensified on social media and in offices, with many assuming that once the tenure of the 7th Pay Commission ended, a new pay structure would come into force. However, months have passed with no hike in salaries or pensions. This has raised key questions: why is there a delay, when will the money be credited, and how much arrears might the government eventually have to pay?

Why Confusion Arose Over The 8th Pay Commission

Traditionally, a new pay commission is constituted every 10 years. The 7th Pay Commission was implemented from January 1, 2016, leading many to believe that the 8th Pay Commission would automatically come into effect from January 1, 2026. However, this was only an assumption. In reality, there is no automatic mechanism for salary revision.

The pay commission process is lengthy. First, the government has to constitute the Pay Commission. The commission then studies all aspects related to salaries, allowances and pensions of employees. After this, it submits its recommendations to the government. Only after the government examines and approves these recommendations is the new pay structure implemented. This is why salaries did not increase automatically even after the tenure of the 7th Pay Commission ended.

What Changed And What Didn’t

In January 2026, there was no increase in salaries of central government employees, nor any change in pensions. So far, the government has not issued any final notification regarding the 8th Pay Commission. As a result, employees and pensioners are continuing to receive salaries and pensions under the existing structure.

When Will The 8th Pay Commission Be Implemented

Based on reports and past experience, the recommendations of the 8th Pay Commission may be implemented in the second half of 2026 or in early 2027. Even if there is a delay, employees will not suffer a financial loss, as the cut-off date is expected to remain January 1, 2026.

How Will Arrears Be Calculated

For example, if an employee’s current salary is Rs 50,000 and it increases to Rs 55,000 after the implementation of the 8th Pay Commission, the monthly difference would be Rs 5,000. If the commission is implemented in May 2027, arrears will be payable from January 2026 to April 2027 -- a total of 15 months. At Rs 5,000 per month, the total arrears would come to Rs 75,000, which would be paid in one go.

Not only employees but pensioners will also benefit from arrears. Their pensions will be recalculated based on the new recommendations, and the difference from the cut-off date to the date of implementation will be paid to them as arrears.