8th Pay Commission: Indian Railways Braces for ₹30,000 Cr Pay Hike

• The 8th Pay Commission is expected to increase Indian Railways' salary and pension burden from ₹22,000 crore (7th PC) to an estimated ₹30,000 crore.
• Railways plan to manage the increased financial burden through internal resources, improved efficiency, cost savings, and higher freight revenue, avoiding external loans.
• Trade unions demand a 2.86 fitment factor for the 8th Pay Commission, potentially increasing the railway salary bill by over 22%.
• Electrification is projected to save ₹5,000 crore annually in fuel costs, while freight revenue is expected to rise by ₹15,000 crore annually by FY 2027-28.
• Indian Railways allocated ₹1.28 lakh crore for staff salaries in FY 2025-26 and ₹68,602.69 crore for the pension fund in FY 2026.

Why It Matters: Indian Railways plans to absorb the 8th Pay Commission's financial burden.