8th Pay Commission Delayed: Salary Hike Post-Budget 2026, Arrears Loom
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News18•19-01-2026, 19:51
8th Pay Commission Delayed: Salary Hike Post-Budget 2026, Arrears Loom
- •The 8th Pay Commission's implementation is delayed, with no announcement despite January 2026 passing, pushing salary revisions beyond schedule.
- •Rating agency ICRA predicts the commission's report could take 15-18 months, making a near-term salary hike unlikely.
- •Retrospective implementation from January 1, 2026, could lead to 15+ months of arrears, causing a 40-50% jump in government salary expenditure in FY2028.
- •Past pay commissions show significant budget pressure from arrears; the 7th Pay Commission saw a 20% salary expenditure increase with just 6 months of arrears.
- •To offset the financial impact, the government might increase capital expenditure by 14% to 13.1 lakh crore rupees in FY2027, accelerating infrastructure projects.
Why It Matters: The 8th Pay Commission faces significant delays, pushing salary hikes past Budget 2026 and creating a large arrears burden.
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