8th Pay Commission arrear calculations for Level 1-5 employees: Expert estimates at 2.15, 2.28 and 2.57 fitment factors

Are you a Level 1-5 employee according to the 7th Pay Commission pay matrix, and wondering how much arrears you could receive when the 8th Pay Commission is implemented? Let’s read what experts say about it and see their 8th Pay Commission arrear calculations .

Pratik Vaidya, MD & chief vision officer, Karma Management Global Consulting Solutions, told ET Wealth online: “The 8th Pay Commission is expected to be implemented around mid-2027, but salary revision is likely to take retrospective effect from January 1, 2026, resulting in arrears of around 12–24 months. The 7th Pay Commission tenure ended on December 31, 2025, making January 1, 2026, the logical effective date for the 8th CPC.”

Ramachandran Krishnamoorthy, director – payroll services, Nexdigm, says arrears can be calculated as:
Monthly pay difference × number of delayed months
The revised pay is derived by applying the approved fitment factor to the existing 7th CPC basic pay.
Krishnamoorthy further says arrears typically include:
•Difference in basic pay
•Difference in dearness allowance (DA) on the revised basic pay
•The total arrears depend on: Length of delay (e.g., 18–24 months)

Vaidya says the 7th CPC fitment factor was 2.57, while estimates for the 8th CPC range between 1.83 and 2.46.
At the lower end (1.83), the minimum basic pay of a Level 1 employee could rise from Rs 18,000 to Rs 32,940, while at the upper end (2.46), the minimum basic pay of the same employee could reach Rs 44,280.
Formula of revised basic pay in a pay commission
Revised basic pay = Existing basic pay × fitment factor
Krishnamoorthy shows how the basic pay of a Level 1 employee can rise in the 8th Pay Commission under 1.92, 2.15 and 2.57 fitment factors.
Example (Level 1, basic pay Rs 18,000):
1.92× Basic = Rs 34,560
2.15×Basic = Rs 38,700
2.57× Basic = Rs 46,260

Krishnamoorthy says based on past CPC practices-
• DA arrears are paid, recalculated month-wise on the revised basic pay.
• HRA arrears are usually not paid, as HRA is revised prospectively.
• Transport allowance arrears are generally not paid, since it is a fixed amount.
“Employees should not expect arrears on fixed or policy-driven allowances unless explicitly notified,” says Krishnamoorthy.
Vaidya says allowances such as DA, HRA and TA are linked to basic pay and typically increase automatically.

Krishnamoorthy provided arrear calculations for Level 1–5 central government employees under the 8th Pay Commission, using fitment factors of 2.0, 2.15, 2.28 and 2.57.
Assumptions used for the the 8th CPC calculations
• Effective date: January 1, 2026
• Arrear period: For 20 months
• Basis of arrears: Difference in basic pay only (DA impact explained separately)
• Allowances (HRA, TA, etc.): Not included
• Existing pay: As per the 7th CPC starting basic pay for Levels 1–5

Step 1: Existing (7th CPC) basic pay
Level- Basic Pay (Rs)
Level 1-18,000
Level 2- 19,900
Level 3- 21,700
Level 4- 25,500
Level 5- 29,200

Step 1: Existing (7th CPC) basic pay
Level- Basic Pay (Rs)
Level 1-18,000
Level 2- 19,900
Level 3- 21,700
Level 4- 25,500
Level 5- 29,200

Level 1
• 2.0×: Rs 36,000
• 2.15×: Rs 38,700
• 2.28×: Rs 41,040
• 2.57×: Rs 46,260
Level 2
• 2.0×: Rs 39,800
• 2.15×: Rs 42,785
• 2.28×: Rs 45,372
• 2.57×: Rs 51,143
Level 3
• 2.0×: Rs 43,400
• 2.15×: Rs 46,655
• 2.28×: Rs 49,476
• 2.57×: Rs 55,769
Level 4
• 2.0×: Rs 51,000
• 2.15×: Rs 54,825
• 2.28×: Rs 58,140
• 2.57×: Rs 65,535
Level 5
• 2.0×: Rs 58,400
• 2.15×: Rs 62,780
• 2.28×: Rs 66,576
• 2.57×: Rs 75,044

Level 1
• 2.0×: Rs 18,000
• 2.15×: Rs 20,700
• 2.28×: Rs 23,040
• 2.57×: Rs 28,260
Level 2
• 2.0×: Rs 19,900
• 2.15×: Rs 22,885
• 2.28×: Rs 25,472
• 2.57×: Rs 31,243
Level 3
• 2.0×: Rs 21,700
• 2.15×: Rs 24,955
• 2.28×: Rs 27,776
• 2.57×: Rs 34,069
Level 4
• 2.0×: Rs 25,500
• 2.15×: Rs 29,325
• 2.28×: Rs 32,640
• 2.57×: Rs 40,035
Level 5
• 2.0×: Rs 29,200
• 2.15×: Rs 33,580
• 2.28×: Rs 37,376
• 2.57×: Rs 45,844

L1
* 2.0× Rs 3.60
* 2.15× Rs 4.14
* 2.28× Rs 4.61
* 2.57× Rs 5.65
L2
* 2.0× Rs 3.98
* 2.15× Rs 4.58
* 2.28× Rs 5.09
* 2.57× Rs 6.25
L3
* 2.0× Rs 4.34
* 2.15× Rs 4.99
* 2.28× Rs 5.56
* 2.57× Rs 6.81
L4
* 2.0× Rs 5.10
* 2.15× Rs 5.87
* 2.28× Rs 6.53
* 2.57× Rs 8.01
L5
* 2.0× Rs 5.84
* 2.15× Rs 6.72
* 2.28× Rs 7.48
* 2.57× Rs 9.17