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Budget 2026: Speculation intensifies regarding 8th Pay Commission, expectations of central employees and pensioners increased
Samira Vishwas | February 1, 2026 7:24 AM CST

8th Pay Commission In Budget 2026: More than 1.1 crore central government employees and pensioners of the country are expecting some big signal regarding the 8th Pay Commission from the Union Budget 2026-27 to be presented on Sunday. All eyes will be on Finance Minister Nirmala Sitharaman’s budget speech to see whether the process of increasing salaries and pensions will be expedited. However, it is still considered difficult to fully implement the salary and pension increase in the financial year 2026-27.

On the day of Budget, only three months would have passed since the formal formation of the 8th Pay Commission. According to reports, the commission has been given 18 months to submit its report. In such a situation, it is unlikely that the salary and pension increase will be implemented in the financial year 2026-27.

Eye on increase in salary and pension fund

According to a report by NDTV Profit, if a separate provision is made in the budget for the expenditure on the government due to salary and pension increases, then it may indicate that the government wants to speed up the process. If this happens, the Pay Commission can speed up the process of negotiations with employees and other concerned parties and submit its report before the scheduled time. At present the last date of the commission’s report is May 2027.

Employees will get good benefits

Whenever a new pay commission comes into effect, the Dearness Allowance (DA) and Dearness Relief (DR) are first reduced to zero and then gradually increased. It has been said in the report that even if the fitment factor is kept a little lower in the 8th Pay Commission, the employees can still get good benefits. The reason for this is that currently the rates of DA and DR are much lower than at the end of the 7th Pay Commission.

After the last revision in October, the rate of DA and DR is 58 percent. 7th pay commission The total expenditure on the government was about Rs 1.02 lakh crore. According to the report, this time due to the large number of employees and pensioners, the impact of the 8th Pay Commission on the government can be Rs 2.4 lakh crore to Rs 3.2 lakh crore.


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