New Delhi. More than 1.1 crore central government employees and pensioners of the country are expecting some big signal regarding the 8th Pay Commission from the Union Budget 2026-27 to be presented on Sunday. Everyone’s eyes will be on the budget speech of Union Finance Minister Nirmala Sitharaman to see whether there will be any announcement to speed up the process of increasing salaries and pensions. However, it is still considered difficult to fully implement the salary and pension increase in the financial year 2026-27. On the day of Budget, only three months have passed since the formal formation of the 8th Pay Commission. According to reports, the commission has been given 18 months to submit its report.
According to the report, if there is a provision of a separate amount in the budget for the expenditure on the government due to increase in salary and pension, then it indicates that the government wants to speed up this process.
If this happens, then the Pay Commission can speed up the process of negotiations with the employees and other concerned parties and submit its report before the scheduled time. At present the last date of the commission’s report is May 2027. Whenever a new pay commission comes into effect, Dearness Allowance (DA) and Dearness Relief (DR) are first reduced to zero and then gradually increased.
It has been said in the report that even if the fitment factor is kept a little lower in the 8th Pay Commission, the employees can still get good benefits. The reason for this is that currently the rates of DA and DR are much lower than at the end of the 7th Pay Commission.
After the last revision in October, the rate of DA and DR is 58 percent. The total expenditure of the 7th Pay Commission on the government was about Rs 1.02 lakh crore. According to the report, this time due to the large number of employees and pensioners, the impact of the 8th Pay Commission on the government can be Rs 2.4 lakh crore to Rs 3.2 lakh crore.