📑 On This Page
When a Pay Commission's effective date is set retrospectively (as has happened with every recent Pay Commission), employees are owed arrears — the cumulative gap between their old and new pay for every month between the effective date and the date the revised pay actually starts being disbursed. This calculator estimates that arrears amount.
Fitment Factor Applied: 0.00x
Monthly Arrear Amount: ₹0
Months Covered: 0
⚠️ Important Note on Accuracy
This calculator produces an estimate based on publicly discussed 8th Pay Commission fitment logic and historical Pay Commission patterns. It is not an official government tool. Always cross-check your final figures with your department's Pay & Accounts Office, DDO, or HR/establishment section once the official 8th CPC notification is published. For authoritative information, refer to dopt.gov.in.
How Arrears Are Calculated
Arrears are simply the sum of the monthly pay difference across every month covered by the retrospective effective date:
- Calculate your revised basic pay (current basic × fitment factor for your level).
- Subtract your current basic pay to get the monthly arrear amount.
- Multiply the monthly arrear amount by the number of months between the effective date and the date you actually start receiving the revised pay.
In practice, arrears also apply to Dearness Allowance and other basic-pay-linked components, so your actual total arrears (once officially processed by your DDO) will typically be somewhat higher than this basic-pay-only estimate.
Are Arrears Taxable?
Yes — arrears are taxable in the financial year they're received, which can push some employees into a higher tax bracket for that year. Section 89 of the Income Tax Act provides relief (via Form 10E) that spreads the tax impact of a lump-sum arrear payment back across the years it relates to, reducing the overall tax burden. Consult a Chartered Accountant to claim this relief correctly.