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A big news is coming out for millions of railway employees of India. The 8th Pay Commission is going to be implemented soon, which is expected to increase a huge increase in the minimum salary of central employees, especially railway employees. It is being speculated that this commission will be effective from 1 January 2026, and along with this, there may be major changes in the salaries, allowances and pension of railway employees. Recently, the Union Cabinet has approved the formation of this commission, causing an atmosphere of enthusiasm among the employees. Come, let’s understand this news deeper.

What will change for railway employees?

Railways is one of the world’s largest government workforce, including technician, traveling ticket examiner (TTE), clerk, junior engineer, station master. Under the 8th Pay Commission, the minimum salary of these employees is expected to increase by 20% to 35%. Currently, the minimum salary under the 7th Pay Commission is Rs 18,000, which can increase from Rs 41,000 to Rs 51,480 on the basis of fitment factor. The fitment factor, which is the basis of amendment in salary and pension, can be between 2.28 and 2.86. This means that an employee, whose original salary is Rs 18,000, can earn up to Rs 41,000, and the total salary can be up to Rs 79,540.

Committee formation: new ray of hope

On 16 January 2025, Union Railway Minister Ashwini Vaishnav announced that Prime Minister Narendra Modi has approved the formation of the 8th Pay Commission. This commission will submit its recommendations to the government within 18 months, after which the new salary structure will be implemented. All India RailwayMans Federation (Airf) General Secretary Shiv Gopal Mishra welcomed the move and said that this is a historic decision for railway employees. He also expressed confidence that if there is a delay in implementing due to some reason, the government will provide dues to the employees. This news is bringing a wave of happiness among the railway employees, as they have been waiting for this change for a long time.

There will also be improvement in allowances and pension

The 8th Pay Commission will not only increase the basic salary, but is also expected to amend allowances like DA (Dearness Allowance), HRA (House Rent Allowance), and Travel Allowance. Currently DA is 55%, and will be adjusted with a new salary structure. Apart from this, there is also good news for pensioners. The minimum pension under the 7th Pay Commission was Rs 9,000, which can now increase to Rs 20,500 with a fitment factor of 2.28. This change will further strengthen economic security for retired employees.

Economic impact and employees’ expectations

With the implementation of the 8th Pay Commission, the Central Government may cost an additional financial burden of estimated Rs 1.8 lakh crore. However, experts believe that this increment will not only improve the economic status of the employees, but will also give momentum to the country’s economy by increasing consumer spending. Railway employees, who are considered to be the backbone of the country, are expecting this change to achieve better reward for their hard work. Especially lower level employees, such as Group C and D, will benefit the most from this increment.