What are 8th Pay Commission salary arrears?
Arrears are the difference between the salary you should have received from the effective date of a pay revision and the salary actually paid until the revised pay slip is issued. The 8th Central Pay Commission was constituted on 3 November 2025 and the revision is widely expected to apply from 1 January 2026, so the gap between the effective date and the first revised payment will accumulate as arrears.
Two separate arrear streams are usually paid together: pay revision arrears from the new pay matrix, and DA arrears where a Dearness Allowance instalment was released after its effective date.
How to calculate arrears in salary — step by step
Step 1: note the basic pay drawn on the effective date and the DA percentage actually paid to you. Step 2: multiply the basic pay by the fitment factor to get the revised basic pay. Step 3: subtract the old basic-plus-DA figure from the revised basic pay to get the monthly difference. Step 4: multiply by the arrear months.
Worked example: basic pay ₹35,400 with 58% DA gives existing pay of ₹55,932. At a 2.28x fitment factor the revised basic is ₹80,712, a monthly gain of ₹24,780. Over 12 months that is ₹2,97,360 in gross arrears before tax and recoveries.
Tax on arrears and Form 10E
Arrears are taxed in the year of receipt, which can push you into a higher slab. Section 89(1) relief lets you recompute tax as if the arrears had been received in the years they relate to; you must file Form 10E on the income tax portal before submitting your return. GPF/NPS subscription, CGHS contribution and licence fee recoveries are adjusted from the gross arrear before credit.