In the 2026 budget of the central government, there was an expectation for the eighth pay commission for government employees. However, the finance minister did not make a direct announcement about it. According to reports, the report of the eighth pay commission is likely to be implemented in this financial year, but no separate budget allocation was seen for it in the 2026 budget. In this situation, experts have predicted that the implementation of the eighth pay commission may be delayed this year.
The government has provided information on the total expenditure in the budget, which is Rs 8,24,114 crore for the financial year 2026-27. This is an increase of Rs 41,413 crore compared to last year's Rs 7,82,701 crore. The direct contribution of salary increases or the eighth pay commission is not clearly visible in this increased expenditure. The increase in expenditure is mainly for new appointments and DA payments. In such a situation, the implementation of the eighth pay commission's salary increase may prove difficult in this financial year.
Since early 2026, approximately 11.9 million central employees and pensioners have been awaiting a salary increase under the eighth pay commission. Amid rising inflation, there has been an increased demand for improvement in the fitment factor. However, due to the delay in the report, the actual salary increase is likely to be implemented only from mid-2027 or early 2028.
The government had announced the establishment of the eighth pay commission on January 15, 2025. However, the commission's process slowed down, and the official gazette notification was issued on October 28, 2025. According to the notification, the commission has been given 18 months to submit the report. Adding 18 months from October 2025, the report will be published by July 2027. After the report is published, it may take the government about six months to make a decision and implement it.
There are indications in the budget presentation that the actual salary increase of the eighth pay commission will be seen in the 2027 budget or early 2028. Therefore, employees will have to wait a little longer.
According to political and economic experts, the delayed implementation of the eighth pay commission will be a financial challenge for the central government, but this planning is necessary from a long-term perspective. The expectation of a salary increase for 1.19 crore employees is significant, so the government will need to plan appropriately for it.