Indian Railways Trims Costs for Upcoming 8th Pay Commission

• Indian Railways is trimming costs in anticipation of increased wage and pension burdens from the 8th Pay Commission.
• The 8th Pay Commission is expected to be implemented retrospectively from January 1, 2026.
• The 8th Pay Commission was constituted in October with Terms of Reference notified on November 3, 2025, to review staff wages and allowances.
• The Commission is tasked with submitting its recommendations within 18 months of its formation.
• Indian Railways recorded an operating ratio of 98.90% in 2024-25, with a target of 98.42% for 2025-26.

Why It Matters: Railways' cost cuts for 8th Pay Commission affect future employee finances.