New Delhi, Jan 31: Over 1.1 crore central government employees and pensioners are looking to the Union Budget 2026–27 for indications on the rollout of the 8th Pay Commission, though an early implementation of revised salaries and pensions appears unlikely.
However, a full implementation of revised salaries and pensions in FY27 appears unlikely.
As of Budget Day, only three months have passed since the formal constitution of the 8th Pay Commission. According to reports, the panel has been given an 18-month timeline to submit its recommendations, making a salary and pension hike within FY27 improbable.
Speculation about a faster implementation would gain credibility only if the Budget includes provisions to absorb the fiscal burden of revised pay and pensions. Such a move could prompt the commission to speed up consultations with key stakeholders and submit its report well before the May 2027 deadline.
Traditionally, dearness allowance (DA) and dearness relief (DR) are reset to zero when a new pay commission’s recommendations are implemented and are later restored in phases. In the case of the 8th Pay Commission, even a modest fitment factor could result in sharper effective pay hikes, as DA and DR levels are currently less than half of what they were at the end of the 7th Pay Commission.
