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Pay Commissions in India have shaped government employee pay structure since 1946. Here we take a look at the tenure and main recommendations of each Pay Commission so far
Each of these Pay Commissions evaluated the economic situation, inflation rates, living standards, and the performance of government employees while making their recommendations. (News18)
Prime Minister Narendra Modi on Thursday approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. The term of the 7th Pay Commission will end in 2026.
Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016.
What Is A Pay Commission?
Pay Commissions are set up by the central government to periodically revise the salaries of government employees. They play a major role in determining the pay structure and other related benefits for concerned employees across various sectors of the public administration.
So far, seven Pay Commissions have been formed. The first Pay Commission was set up in 1946, the second in 1957, the third in 1973, the fourth in 1986, the fifth in 1997, the sixth in 2006 and the seventh in 2014. Each of these commissions evaluated the economic situation, inflation rates, living standards, and the performance of government employees while making their recommendations.
Let’s take a look at the tenure and main recommendations of each Pay Commission so far.
First Pay Commission (May, 1946 to May, 1947)
The first Pay Commission was established shortly after Independence to recommend changes in the pay structure for government employees. Attention was paid to the rationalising of the salary structure. The concept of a ‘living wage’ was introduced.
Chairman: Srinivasa Varadacharaya
Minimum salary: Rs 55 per month
Maximum salary: Rs 2,000 per month
Beneficiaries: About 15 lakh employees
Second Pay Commission (August, 1957 to August, 1959)
This one focused on balancing the economy and improving the cost of living of government employees.
Chairman: Jagannath Das
Minimum salary: Rs 80 per month
Beneficiaries: About 25 lakh employees
Third Pay Commission (April, 1970 to March, 1973)
The third Pay Commission emphasised on pay parity between the government and private sector. Inequalities in the salary structure were removed as it introduced the concept of standardization of pay scales across central government employees.
Chairman: Raghubir Dayal
Minimum salary: Rs 185 per month
Beneficiaries: About 30 lakh employees
Fourth Pay Commission (September, 1983 to December, 1986)
The 4th Pay Commission focused on reducing inequalities in pay across ranks. A performance-linked pay structure was introduced. This rationalized structure took a consideration of the social and economic conditions at the time.
Chairman: PN Singhal
Minimum salary: Rs 750 per month
Beneficiaries: Over 35 lakh employees
Fifth Pay Commission (April, 1994 to January, 1997)
This one suggested a reduction in the number of pay scales. It focused on modernising government offices and addressed issues related to rising inflation and improving the financial stability of employees
Chairman: Justice S. Ratnavel Pandian
Minimum salary: Rs 2,550 per month
Beneficiaries: About 40 lakh employees
Sixth Pay Commission (October, 2006 to March, 2008)
This was a significant Commission that made major revision in the pay scales of employees, and introduced the concept of ‘Pay Bands’ and ‘Grade Pays’, with an emphasis on performance-linked incentives.
Chairman: Justice B.N. Sri Krishna
Minimum salary: Rs 7,000 per month.
Maximum salary: Rs 80,000 per month
Beneficiaries: Around 60 lakh employees
Seventh Pay Commission (February, 2014 to November, 2016)
This Pay Commission recommended major changes, including a new pay matrix to replace the grade pay system. It focused on perks, pensions, and allowances for central government employees while also ensuring a work-life balance.
Chairman: Justice A K Mathur
Minimum salary: Rs 18,000 per month
Maximum salary: Rs 2,50,000 per month
Beneficiaries: More than 1 crore
