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New Delhi: The period of the 7th Pay Commission is coming to an end on 31 December 2025 and the recommendations of the 8th Pay Commission were expected to be implemented from 1 January 2026. However, it is not going to happen soon. Experts believe that there may be a delay in the arrival of the Commission's report and the implementation of the recommendations. With this delay, employees will get arrears on basic pay, but one main allowance, there will be no arrears on House Rent Allowance (HRA), which may result in a loss of lakhs of Rupees.
In November 2025, the Finance Ministry gave 18 months to submit its report to the 8th Pay Commission. According to experts, it may take an additional 6 months to implement the recommendations, that is, a total delay of 24 months is possible. Although arrears can be available from 1 January 2026, arrears are not given on some allowances, which will directly affect the pocket of employees.
Previous pay commissions were delayed, but arrears were met from the previous date. However, arrears are not given on certain allowances. According to a report by ET, employees may suffer losses ranging from thousands to lakhs of Rupees on HRA due to the delay of the 8th pay commission.
| Pay Commission implementation date | Basic Pay | HRA | HRA in 12 months |
|---|---|---|---|
| 8th CPC applicable from 1st January 2026 (assuming 2.1 fitment factor) | ₹1,60,650 | ₹38,556 | ₹4,62,672 |
| 8th CPC will be applicable from 1 January 2028 | ₹76,500 | ₹22,950 | ₹2,75,400 |
| Loss in 12 months | ₹1,87,272 |
| Pay Commission implementation date | Basic Pay | HRA | HRA in 12 months |
|---|---|---|---|
| 8th CPC applicable from 1st January 2026 (assuming 2.1 fitment factor) | ₹1,65,470 | ₹39,713 | ₹4,76,552 |
| 8th CPC will be applicable from 1 January 2028 | ₹78,795 | ₹23,639 | ₹2,83,662 |
| Loss in 12 months | ₹1,92,890 | ||
| Total loss in 24 months | ₹3,80,162 |
For example, if an employee is on the basic salary of Rs 76,500 and the commission comes into effect from 1 January 2028, the total loss could be more than Rs 3.80 lakh. This is mainly due to HRA.
Dearness Allowance (DA), House Rent Allowance (HRA) and Transport Allowance (TA) are the main allowances of central employees. Apart from this, there are also Uniform Allowance, Child Education Allowance (CEA) etc.
Fixed allowances like TA, uniform and CEA do not depend on the basic salary. They are revised in the Pay Commission, but arrears are not available. Arrays are available only on basic pay.
Dearness Allowance (DA) - Employees do not get arrears on DA, because at the end of the pay commission DA is merged with basic pay to form a fitment factor. By increasing the basics in the new commission, DA is automatically increased. Presently the DA is 58%.
House Rent Allowance (HRA) — This is the reason for the biggest loss. Employees do not get arrears on HRA in the new pay commission. This delay can cause losses of thousands to millions of rupees.
The central government gives HRA to employees based on the city they live in. Cities are divided into X, Y and Z categories:
The government also fixed the minimum HRA. Rs 5,400 for X cities, Rs 3,600 for Y and Rs 1,800 for Z.
