8th Pay Commission: How Much Arrear Will You Get?

The 8th Pay Commission is expected from January 2026. Your arrear payout depends on the fitment factor chosen. Higher the fitment factor, bigger the lump sum — here's how to estimate your number.

Here's what happened: The 8th Pay Commission is likely effective January 1, 2026, with arrears paid once the revised pay is officially notified — often 1–2 years later.. Fitment factors being discussed range from 2.0 to 2.86; the 7th Pay Commission used 2.57, which became the benchmark for arrear calculations.. A Level 7 employee (basic pay ₹44,900) could receive arrears between roughly ₹1.3 lakh and ₹3.1 lakh depending on the fitment factor finally approved..

What you should do: Calculate your own arrear estimate: multiply your current basic pay by the fitment factor minus 1, then multiply by the number of arrear months expected.. Plan ahead for the lump-sum tax hit — arrear income is fully taxable in the year of receipt; use Form 10E to claim relief under Section 89(1) and avoid overpaying tax.. Avoid lifestyle splurges with the arrear; instead, park it in a high-yield instrument like PPF top-up, NPS tier-1, or a short-term FD to build long-term wealth..

File Form 10E on the Income Tax portal BEFORE submitting your ITR in the arrear year — skipping it means the tax department will reject your Section 89(1) relief claim automatically.