Since India’s independence in 1947, the government has established several Pay Commissions to review and recommend salary structures for its employees. Each commission has played a pivotal role in shaping the compensation framework, reflecting the evolving economic landscape and administrative needs.
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First Pay Commission (1946-1947)
Established in January 1946 under the chairmanship of Srinivasa Varadachariar, the First Pay Commission submitted its report in May 1947. Its primary mandate was to examine and recommend the emolument structure for government employees. The commission introduced the principle of “living wages” to ensure a decent standard of living for government staff. It proposed a minimum salary of Rs 55 per month and maximum salary of Rs 2,000 per month.
Second Pay Commission (1957-1959)
A decade later, in August 1957, the Second Pay Commission was constituted with Jagannath Das as its chairman. It presented its report after two years, recommending the minimum wage of Rs 80 per month.
Third Pay Commission (1970-1973)
The Third Pay Commission, under the chairmanship of Raghubir Dayal, emphasised on the salary parity between public and private sectors. In its report, the commission addressed inequalities in the pay structure.
Fourth Pay Commission (1983-1986)
Constituted in June 1983 under the chairmanship of P N Singhal, the Fourth Pay Commission submitted its recommendations in three phases over four years, recommending a minimum salary of Rs 750 per month. This commission introduced a performance-linked pay structure.
Fifth Pay Commission (1994-1997)
Notified on 9 April 1994, the Fifth Pay Commission was chaired by Justice S Ratnavel Pandian. It recommended a significant reduction in the government workforce and proposed cutting down the number of pay scales. The commission focussed on modernising government offices
Sixth Pay Commission (2006-2008)
The Sixth Pay Commission, established in October 2006 under Justice B N Srikrishna, submitted its report in March 2008. It introduced the concept of running pay bands and grade pay to address stagnation and streamline the pay structure. It focussed on performance-related incentive.
Seventh Pay Commission
Implemented from Jan 1, 2016, the Seventh Pay Commission recommended a 23.55% overall increase in pay, allowances, and pensions. The minimum pay was set at Rs 18,000 per month, and the fitment factor was established at 2.57.
Eighth Pay Commission (announced on January 16, 2025)
On 16 January 2025, Union Minister Ashwini Vaishnaw announced the government’s approval for the formation of the Eighth Pay Commission. While specific recommendations are pending, there is anticipation of significant salary revisions to align with current economic conditions.