8th Pay Commission: How Much Arrears You May Get?

The 8th Pay Commission is expected from January 2026. Entry-level government employees at Level 1 could receive big salary hikes and one-time arrears depending on which fitment factor gets approved — here is what it means for your wallet.

Here's what happened: The 8th Pay Commission is expected to revise salaries effective January 1, 2026, with arrears paid from that date onward.. Fitment factors being discussed range from 2.0 to 2.57 — higher the factor, larger the basic pay and arrear amount.. Level 1 employees (currently at ₹18,000 basic pay) could see basic pay jump to ₹36,000–₹46,260 depending on the approved fitment factor..

What you should do: Calculate your expected new basic pay by multiplying your current basic pay by the likely fitment factor (2.0 to 2.57) to plan ahead.. Avoid locking all expected arrears into illiquid investments — keep at least 30% liquid in a savings account or short-term FD for tax payments.. Check your tax slab now: a large one-time arrear payout could push you into a higher bracket — consider filing Form 10E to claim relief under Section 89..

Pro tip: Arrear income is taxable in the year received, but Section 89(1) of the Income Tax Act lets you spread the tax liability across past years — file Form 10E before your ITR to avoid paying extra tax on that lump sum.