Indian Railways is proactively planning to implement cost-cutting measures across maintenance, procurement and energy sectors to strengthen its financial position ahead of the anticipated wage hike following the Eighth Pay Commission recommendations.

The Eighth Pay Commission, established in January 2025, is tasked with submitting its recommendations within 18 months. The previous Seventh Pay Commission had led to salary increases of 14–26% for railway employees, implemented in 2016, and concluded in January 2026. Its implementation had increased the wage expenditure by ₹22,000 crore, including salaries and pensions. Current projections suggest the Eighth Pay Commission could push the wage bill up by around ₹30,000 crore.

Internal accruals, projected savings from cost-cut initiatives, an

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