8th Pay Commission Delayed: Salary Hike Expected by FY2028, ICRA Warns of Financial Impact

• The 8th Pay Commission, expected by January 2026, is likely to be delayed, with its financial impact seen in FY2028.
• Rating agency ICRA reports that the commission's final report is 15-18 months away, making immediate salary revisions impossible.
• Implementation of the 8th Pay Commission is projected to significantly increase government expenditure on salaries and pensions.
• ICRA estimates a 40-50% increase in salary expenditure in FY2028 if the new pay structure applies from January 1, 2026, due to arrears.
• Central government employees will receive a large sum in arrears when implemented, but face a longer wait for salary revisions.

Why It Matters: The 8th Pay Commission is delayed, with salary hikes and significant financial impact on government finances expected by FY2028.