Indian Railways Prepares for 8th Pay Commission Salary Hike, Boosts Finances

• Indian Railways is preparing for the 8th Pay Commission, anticipating a significant increase in employee salaries and a potential ₹30,000 crore rise in annual expenditure.
• The 8th Pay Commission was formed in January 2025 and is expected to submit its recommendations within 18 months.
• Railways is implementing cost-cutting, enhancing operational efficiency, and boosting freight revenue to strengthen its financial position.
• Annual savings of approximately ₹5,000 crore are expected from the complete electrification of the rail network.
• Employee unions are demanding a 2.86 fitment factor, which could lead to a more than 22% increase in salary costs if accepted.

Why It Matters: 8th Pay Commission will significantly raise Indian Railway employee salaries.