Finance minister Nirmala Sitharaman presented the Union Budget in Parliament on Sunday, laying out the government’s economic priorities, reform agenda and fiscal roadmap against the backdrop of a challenging global environment.
It is standard practice for the government to wait until a Pay Commission completes its work before taking decisions that carry significant financial implications.
However, the Budget did not include any announcement on a salary hike under the 8th Pay Commission.
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Instead, the focus stayed firmly on broader economic issues.
In her 81-minute Budget speech, Sitharaman spoke about changes to the timeline for filing income tax returns, a hike in Securities Transaction Tax on futures and options, the expansion of India’s semiconductor mission, and plans related to rare earth corridors.
The Budget drew praise from Prime Minister Narendra Modi and several ministers and BJP leaders, who described it as forward-looking. In contrast, the Congress and other Opposition parties criticised it as lacklustre and accused the government of failing to introduce meaningful reforms for the poor.
What do we know about 8th pay commission?
On the 8th Pay Commission, the latest development came in October 2025, when the Union Cabinet approved its Terms of Reference, PTI reported.
This cleared the way for the commission to examine salary structures and recommend revisions.
However, the government has not yet indicated when the revised pay scales, if any, would come into effect, the report added.
The commission’s recommendations are expected to impact around 50 lakh central government employees, including personnel from the defence forces, along with nearly 69 lakh pensioners.
Much of the discussion among employees has centred on arrears.
Arrears refer to the additional amount paid when a salary hike is implemented from an earlier date than when it is officially announced.
In such cases, employees receive the revised salary going forward, along with a lump-sum payment covering the difference for the months during which the hike was delayed.
