8th Pay Commission: Indian Railways has started preparations to strengthen its finances and cut down its expenses before the implementation of the 8th Pay Commission. After the implementation of the 8th Pay Commission, there will be a huge increase in the expenditure of Railways on salaries of officers and employees. To deal with the increasing expenditure on salaries, Indian Railways is considering various measures to reduce expenses on maintenance, procurement and energy. Let us tell you that the 8th Pay Commission constituted in January this year has to give its recommendations within 18 months of its formation.
Staff salaries were increased by 14-26% in the 7th Pay Commission.
According to an Economic Times report, the salaries of railway employees were increased by 14-26% due to the recommendations of the 7th Pay Commission. The recommendations of the 7th Pay Commission were implemented in 2016 and its 10-year tenure is going to end in January 2026. Officials say Indian Railways is focusing on reducing expenses to improve its operating performance in the next two years, so that the impact of salary increase does not derail its finances.
Annual expenditure of Railways may increase by Rs 30,000 crore
After the implementation of the 7th Pay Commission, there was an increase of Rs 22,000 crore in the expenditure of Railways on salary and pension of officers and employees. But, it is believed that after the implementation of the 8th Pay Commission, the salary and pension expenditure may increase by up to Rs 30,000 crore. “We have made plans to meet the additional fund requirement,” a senior railway official told ET. The official said the additional expenditure on salaries will be met from internal accruals, combining estimated savings and higher freight earnings.
Central Trade Union has demanded implementation of fitment factor of 2.86
The 7th Pay Commission had implemented a fitment factor of 2.57, due to which the minimum basic salary of railway employees increased from Rs 7000 to Rs 17,990. The Central Trade Union has demanded from the Central Government to implement the fitment factor of 2.86 this time. Officials said that according to the fitment factor of 2.86, the salary bill of Railways may increase by more than 22 percent. Let us tell you that the number of employees of Indian Railways is much more than the number of employees of any department in the country.
No plans to take new short-term loan
The official said that after the completion of electrification of the rail network, there is an estimated saving of up to Rs 5000 crore in the annual energy bill. The official said there are no plans to take any new short-term loans. The official said that when officers and employees will have to be paid higher salaries in 2027-28, the annual freight earnings of the Railways will also increase to Rs 15,000 crore. Indian Railways has budgeted Rs 1.28 lakh crore for staff salaries for 2025-26, which is Rs 11,000 crore more than Rs 1.17 lakh crore for financial year 2024-25. Rs 68,602.69 crore allocated for the pension fund in FY 2026, up from Rs 66,358.69 crore in FY 2025.
Latest Business News