8th Pay Commission: It is still not clear when the 8th Pay Commission will be implemented, but it is expected to be implemented at the beginning of 2028.

8th Pay Commission: The Eighth Pay Commission is expected to be implemented in early 2028. This is expected to result in a 30-34 percent increase in the salaries of central government employees. Indian Railways has already begun preparing for this, ensuring it is financially strong enough to avoid a significant financial burden.

Since the expenditure on employees will increase due to the Eighth Pay Commission, the Railways is already taking measures to cut expenditure in maintenance, procurement, and energy sectors to strengthen its financial health. 

When will the 8th Pay Commission be implemented? 

The government has not yet clarified whether the Eighth Pay Commission will be implemented from January 1, 2026. The committee constituted for the Eighth Pay Commission may take up to 18 months from the date of notification (November 3, 2025) to submit its report on the Pay Commission. Only then will a decision be made on when to implement it. In the meantime, the Railways will need to improve its balance sheet to absorb the additional expenditure on employee salaries without causing significant pressure.

The government has already announced that the Terms of Reference of the 8th Pay Commission will be notified on November 3, 2025. There are 50.14 lakh central government employees and approximately 69 lakh pensioners across the country who will directly benefit from salary hikes following the recommendations of this commission. 

Learning from the experiences of the 7th Pay Commission

Indian Railways is learning from its past experiences with the 7th Pay Commission. Implemented in 2016, this Pay Commission provided railway employees with salary increases of 14 to 26 percent. The expenditure on pensions and salary increases totaled approximately ₹22,000 crore. The 7th Pay Commission's term ends on December 31, 2025. Consequently, the expenditure on salary and pension increases is estimated to increase by ₹30,000 crore in the next Pay Commission.

In an interview with the Economic Times, a senior railway official said, "We have formulated a plan to address the need for additional funds. This will help increase savings."