8th Pay Commission Arrears: Payouts of Rs 3-9 Lakh Likely For Level 1-5 Staff Under These Fitment Factors

The 8th Central Pay Commission (CPC) launched its official website last week, marking an important step in the revision of salaries, pensions and allowances for government employees. The Commission also sought feedback from ministries, departments, central government employees, and other stakeholders through a structured questionnaire on the MyGov portal.

Central government employees are now eagerly waiting for clarity on the payment of arrears and the actual date of implementation of the 8th Pay Commission recommendations.

The government announced the 8th CPC in January 2025, and it was notified by the Finance Ministry through a notification dated Nov. 3.

The previous pay panel's tenure ended on Dec. 31, 2025, and the effective date of the 8th CPC is Jan. 1, 2026. So, the central government employees are expecting to be paid arrears for the period between Jan. 1 and the actual date of implementation.

However, the rollout of 8th CPC recommendations may take more than a year.   

For lakhs of employees in Levels 1 to 5, the salary hike under a fitment factor of 2.0 or higher could translate into a lump sum payout in lakhs.

ALSO READ: 8th Pay Commission: Have Your Say On Fitment Factor And Salary Hike Via MyGov.In — Here's How

How Arrears Are Calculated

Arrears under the 8th Pay Commission are calculated by multiplying the monthly pay difference by the number of months the payment is delayed. The revised salary is worked out by applying the approved fitment factor to the employee's existing basic pay under the 7th CPC. Arrears usually include the difference in basic salary and the difference in dearness allowance (DA) based on the revised pay. The total amount depends on the length of the delay, usually ranging from 18 to 24 months.

Sample Calculations For Levels 1 To 5

Using fitment factors of 2.0, 2.15, 2.28 and 2.57, an illustrative calculation of arrears for Levels 1-5 employees can be made. The calculations assume an effective date of Jan. 1, 2026, and cover an arrear period of 20 months. They are based on the difference in basic pay, with dearness allowance (DA) considered separately, and do not include other allowances such as HRA or TA. The existing pay is taken as the starting basic pay for Levels 1-5 under the 7th Pay Commission.

Calculating Arrears: 7th CPC Basic Pay For Levels 1 To 5

• Level 1: Rs 18,000
• Level 2: Rs 19,900
• Level 3: Rs 21,700
• Level 4: Rs 25,500
• Level 5: Rs 29,200

8th Pay Commission: Revised Basic Pay At Different Fitment Factors

Level 1 (L1)

• 2.0× Rs 36,000
• 2.15× Rs 38,700
• 2.28× Rs 41,040
• 2.57× Rs 46,260

Level 2 (L2)

• 2.0× Rs 39,800
• 2.15× Rs 42,785
• 2.28× Rs 45,372
• 2.57× Rs 51,143

Level 3 (L3)

• 2.0× Rs 43,400
• 2.15× Rs 46,655
• 2.28× Rs 49,476
• 2.57× Rs 55,769

Level 4 (L4)

• 2.0× Rs 51,000
• 2.15× Rs 54,825
• 2.28× Rs 58,140
• 2.57× Rs 65,535

Level 5 (L5)

• 2.0× Rs 58,400
• 2.15× Rs 62,780
• 2.28× Rs 66,576
• 2.57× Rs 75,044

8th Pay Commission: Estimated Arrears For 20 Months (Basic Pay Only)

Level 1 (L1)

• 2.0× Rs 3.60 lakh
• 2.15× Rs 4.14 lakh
• 2.28× Rs 4.61 lakh
• 2.57× Rs 5.65 lakh

Level 2 (L2)

• 2.0× Rs 3.98 lakh
• 2.15× Rs 4.58 lakh
• 2.28× Rs 5.09 lakh
• 2.57× Rs 6.25 lakh

Level 3 (L3)

• 2.0× Rs 4.34 lakh
• 2.15× Rs 4.99 lakh
• 2.28× Rs 5.56 lakh
• 2.57× Rs 6.81 lakh

Level 4 (L4)

• 2.0× Rs 5.10 lakh
• 2.15× Rs 5.87 lakh
• 2.28× Rs 6.53 lakh
• 2.57× Rs 8.01 lakh

Level 5 (L5)

• 2.0× Rs 5.84 lakh
• 2.15× Rs 6.72 lakh
• 2.28× Rs 7.48 lakh
• 2.57× Rs 9.17 lakh

Employees in the lower pay levels could therefore expect arrears of over Rs 3 lakh, while Level 5 employees may see arrears exceeding Rs 9 lakh, depending on the fitment factor applied.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.