Indian Railways Eyes Cost Cuts, Efficiency Ahead of 2026 Pay Commission End

• The 7th Pay Commission, which increased railway salaries by 14-26%, concludes in January 2026.
• Indian Railways is focusing on cost-cutting and operational efficiency to manage future pay revisions without financial strain.
• The 7th Pay Commission raised the Railways' salary and pension bill by Rs 22,000 crore; the 8th could add Rs 30,000 crore.
• Railways plans to fund future pay hikes through internal resources, including savings, higher freight earnings, and financial efficiencies.
• Unions demand a 2.86 fitment factor, which could increase the salary bill by over 22%; Railways projects Rs 15,000 crore freight revenue rise by 2027-28.

Why It Matters: Future railway salaries and Indian Railways' finances are at stake.