8th Pay Commission: Good news for more than 12 lakh Railway employees, can work start from now after salary increase?
New Delhi Big news has come for railway employees. Even before the implementation of the 8th Pay Commission, Indian Railways has started preparing for salary increase. In view of the huge increase in expenditure on salaries and pensions in the coming time, Railways has already started taking steps to strengthen its finances by cutting expenses, saving and increasing earnings. It is clear that as soon as the 8th Pay Commission is implemented, a big increase in the salary of the employees is considered certain.
When will the 8th Pay Commission report come?
The 8th Pay Commission was constituted in January 2025 and the Term of Reference (ToR) was released on 28 October 2025. The commission has got 18 months to give its recommendations. That means the report is expected to come before January 2026. In such a situation, Railways has limited time, hence it is already busy in improving its financial health.
What did Railways learn from the 7th Pay Commission?
Railways remembers the experience of 7th Pay Commission. When the 7th Pay Commission was implemented in the year 2016, the salary of the employees increased from 14% to 26%. This had a direct impact on the budget of the Railways and the annual salary-pension burden increased by about Rs 22,000 crore. Now according to internal assessment, after the 8th Pay Commission, this additional burden can reach Rs 30,000 crore.
Also read- 8th Pay Commission: Will the method of increasing salary change? The stir increased due to the government's signal; What changes can happen?
What are the preparations to deal with increasing expenses?
Railway officials say that complete planning is being done in advance to deal with this challenge.
What is the current financial position of Railways?
The operating ratio of Railways in the financial year 2024-25 was 98.90%, while a net income of Rs 1341.31 crore was recorded during this period. The operating ratio for FY 2025-26 is targeted to improve to 98.43% and the net revenue is estimated to reach Rs 3,041.31 crore.
Will there be big savings from electricity and loan?
Electrification of the entire rail network is expected to save around Rs 5,000 crore every year. इसके अलावा, 2027-28 से रेलवे फाइनेंस कॉरपोरेशन (IRFC) को किए जाने वाले भुगतान में भी कमी आएगी, क्योंकि हाल के वर्षों में पूंजीगत खर्च का बड़ा हिस्सा बजटीय सहायता से पूरा किया गया है।
Fitment factor becomes a challenge
The demands of employee organizations are also important for the Railways. In the 7th Pay Commission, 2.57 fitment factor was implemented, whereas now the unions are demanding 2.86 fitment factor. If this demand is met, salary expenses could increase by more than 22%.
Railway's confidence and budget increase
Despite all this, Railways is confident. The budget for employee salaries has been increased to Rs 1.28 lakh crore in the financial year 2025-26, which was Rs 1.17 lakh crore last year. More funds have also been allocated for pension. Railways believes that with proper planning and increasing income, the impact of the 8th Pay Commission can be balanced and more than 12 lakh 50 thousand Railway employees will directly benefit from it.
Follow for every important news related to business, market updates and personal finance tips.