Union Budget 2026: Central government employees and pensioners were disappointed after Union Budget 2026–27 did not include any update on salary revision under the 8th Central Pay Commission (CPC). This absence has increased frustration among staff unions, which have now warned of a one-day nationwide strike on February 12, 2026, if the government does not begin serious discussions on pay, pensions, and staffing concerns.
The Confederation of Central Government Employees & Workers (CCGEW), which represents a large number of public sector employees, has written to the Cabinet Secretary asking for urgent talks. The union said that failure to act may lead to protests across different departments, showing rising anger while the Pay Commission process continues.
8th Pay Commission: What Employees Are Asking ForÂ
The 8th Pay Commission was set up in November 2025 and has been given 18 months to submit its report. However, unions say the current process overlooks workers’ concerns. They want changes in the Terms of Reference (ToR) so that formal proposals from the CCGEW and the National Council (Staff Side) of the Joint Consultative Machinery are properly reviewed.
Their main demands include:
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Merging 50% Dearness Allowance (DA) and Dearness Relief (DR) with basic pay and pension
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20% interim relief on salaries and pensions from January 1, 2026, until final recommendations are implemented
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Pension reforms, including ending the National Pension System (NPS) and the Unified Pension Scheme, and restoring the Old Pension Scheme (OPS) for all central employees
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Releasing three DA/DR instalments that were frozen during the Covid-19 period
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Speeding up the restoration of pension commutation
8th Pay Commission: Staffing and Service Issues
Unions also raised concerns beyond salary and pensions. They highlighted staff shortages and poor service conditions. Their demands include:
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Removing limits on compassionate appointments
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Filling vacant government posts
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Stopping outsourcing and corporatisation of public services
Union leaders warned that many workers may join the strike if the government does not respond.
Budget 2026:Â What Covered and What It Left Out
While presenting the Budget, Finance Minister Nirmala Sitharaman focused on capital expenditure, infrastructure, and reforms. However, she did not mention any plan, funding, or timeline for implementing salary or pension changes under the 8th CPC.
Experts believe this is because the commission is still in its early stages. Since it has up to 18 months to finish its work, its recommendations are not expected during FY27, making an immediate pay hike financially difficult.
8th Pay Commission: Why No Salary Hike Was Announced
As the 8th CPC has not completed its review, the government avoided setting aside funds for higher salaries or pensions. Without budget provisions, a pay revision in FY26–27 looks unlikely.
8th Pay Commission:Â Expected Timeline and What Lies Ahead
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Report submission: Possibly by late 2027 or early 2028
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Implementation: Only after the government accepts the report
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Retrospective effect: Any approved hike may apply from January 1, 2026, with arrears paid later
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DA payments: Will continue under the existing pay system until new rules are implemente
With no immediate relief from Budget 2026, millions of government employees and pensioners remain uncertain. As unions increase pressure and the strike date approaches, the situation now depends on whether discussions begin soon — or if tensions continue until the commission submits its final report.
