NEW DELHI: With the 8th Pay Commission officially active as of three days ago, the spotlight has shifted entirely to North Block. On February 1, 2026, Finance Minister Nirmala Sitharaman will present the Union Budget, and for 48 lakh central employees, there is only one question: Is there a provision for us?

While the Pay Commission’s final report is at least 18 months away, budget experts believe this year’s financial statement could drop critical hints about the government’s intent—specifically regarding Interim Relief and the administrative budget for the Commission itself.

The ‘Interim Relief’ Card

Historically, Pay Commissions take years to deliberate. The 7th CPC took roughly 20 months. Acknowledging this delay, employee federations like the NC-JCM often demand Interim Relief (IR)—typically 10-15% of basic pay—to help employees cope with inflation while they wait for the final report.

Will Budget 2026 announce it?
Political analysts suggest the odds are 50-50. “The government has just survived a tight fiscal year,” notes a senior economist from a leading brokerage. “However, with state elections on the horizon later this year, a subtle announcement of ‘Interim Relief’ could be the populist masterstroke the administration needs.”

The 18-Month Arrear Question

The ghost of the COVID-era frozen DA (Jan 2020 – June 2021) refuses to vanish. While the government has repeatedly stated in Parliament that “no proposal is under consideration,” the formation of the 8th CPC changes the dynamic.

Unions are lobbying for the Budget to include a one-time settlement corpus. If the Finance Minister mentions “clearing past dues” or “strengthening social security” in her speech, it could be the signal employees have been praying for.

📊 Budget Expectations vs. Reality