The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, has sparked significant discontent among central government employees and pensioners due to the complete absence of any announcement or allocation related to the 8th Central Pay Commission (8th CPC).
Despite expectations that the budget might provide some clarity, interim relief, or funding signals for the long-awaited salary and pension revisions, no such provisions were included. This omission has intensified frustrations, as the 8th Pay Commission—constituted in November 2025 and tasked with reviewing pay, allowances, and service conditions for over 1.1 crore central government employees and approximately 65 lakh pensioners—is expected to have its recommendations effective from January 1, 2026, though the panel has an 18-month timeline to submit its report (likely around mid-2027).
The Confederation of Central Government Employees and Workers (CCGEW), a major umbrella body representing these workers, has responded sharply by issuing a formal strike notice to the Cabinet Secretary. The group has threatened a one-day nationwide strike on February 12, 2026, unless the government engages in meaningful dialogue and addresses their charter of demands.
Key grievances and demands driving the protest threat include:
Modification of the Terms of Reference (ToR) for the 8th Pay Commission to make it more employee-friendly and inclusive of long-standing concerns.
Merger of a substantial portion of Dearness Allowance (DA) (such as 50%) with basic pay to provide immediate relief.
Interim relief measures, including a proposed 20% hike on pay and pensions effective from January 1, 2026, pending final implementation.
Release of withheld DA/DR instalments frozen during the COVID-19 period.
Pension reforms, including restoration of commutation periods and addressing issues with the National Pension System (NPS) versus Old Pension Scheme (OPS) demands.
Resolution of broader staffing and labour-related issues.
The unions argue that the government's silence in the budget, combined with the delayed timeline for the commission's report, leaves employees without timely relief amid rising living costs. They have emphasized that the strike will involve affiliated bodies across the country if talks are not initiated promptly.
Government sources have noted that it is standard practice not to allocate funds or announce pay revisions in the budget while a Pay Commission is still deliberating, as recommendations are awaited before any fiscal commitments. The budget did include a routine DA/DR adjustment (around 2% in recent cycles), but nothing specific to the 8th CPC.
This development highlights growing tensions between central government workers and the administration, with the February 12 deadline now serving as a critical pressure point for negotiations. Employee unions have urged Prime Minister Narendra Modi-led government to open discussions to avert the protest, while experts estimate that eventual 8th CPC implementation could involve significant fiscal implications, potentially in the range of ₹2.4–3.2 lakh crore.
As the situation unfolds, all eyes are on whether backchannel talks or official responses emerge before the threatened strike date. Central employees and pensioners continue to await concrete progress on the pay revision that many view as overdue.
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