Key Pay Commissions

• First Pay Commission (1957):

  Established to revise the pay scales for central government employees. It aimed to address disparities and set a precedent for future commissions.

• Second Pay Commission (1970):

  Focused on rationalizing pay structures and introduced the concept of a minimum wage.

• Third Pay Commission (1973):

  Brought significant increases in pay scales, addressing inflation and improving overall compensation.

• Fourth Pay Commission (1986):

  Recommended a comprehensive pay structure and emphasized the need for a more equitable wage system.

• Fifth Pay Commission (1994):

  Introduced a more scientific approach to pay scales and linked salaries with performance.

• Sixth Pay Commission (2006):

  Provided substantial increases in pay and allowances, along with new structures for pensions and other benefits.

• Seventh Pay Commission (2016):

  Made recommendations that affected over 1 crore central government employees and pensioners, significantly impacting salaries, allowances, and pension structures.

Functions of the Pay Commission

• Salary Structure Review:

  Evaluate and recommend changes to the pay scales.

• Allowance Recommendations:

  Suggest changes in various allowances like dearness allowance, house rent allowance, etc.

• Pension Schemes:

  Review and recommend improvements to pension schemes for retirees.

• Workplace Equality:

  Address disparities in pay among different categories of employees.

Major Pay Commissions in India

Since Independence, seven major pay commissions have been established to suggest changes to the pay structure of all civil and military employees.

An introduction to the 1st to 8th pay commissions.

• 1st Pay Commission (1946):

  Created a structured pay scale for government employees after independence.

• 2nd Pay Commission (1957):

  Introduced the concept of fair wages based on socialistic principles.

• 3rd Pay Commission (1970):

  Addressed pay disparities and introduced several new allowances.

• 4th Pay Commission (1983):

  Inflation-related salary increases were recommended.

• 5th Pay Commission (1994):

  Revised the salary structure and introduced Dearness Allowance (DA).

• 6th Pay Commission (2006):

  Introduced the Pay Band system, among other changes.

• 7th Pay Commission (2014):

  This commission introduced the Pay Matrix system and recommended substantial pay increases.

• 8th Pay Commission:

  The expected date for this revision is January 1, 2026.

Pay Commission FAQs

• Which Pay Commission is going on in India?

  The 7th Pay Commission is currently in effect in India.

• What is the concept of Pay Commission?

  The Pay Commission is a central government body established to review and recommend changes to the salary structure, allowances, and pensions of government employees. Its primary goal is to ensure fair compensation that reflects the economic conditions and the cost of living.

• What is the time period of the 7th Pay Commission?

  The 7th Pay Commission was constituted in February 2014, and its recommendations were implemented starting from January 1, 2016.

• Will there be an 8th Pay Commission in India?

  As of now, there has been no official announcement regarding the formation of an 8th Pay Commission in India.

• When did the 7th Pay Commission start?

  The 7th Pay Commission was formed by the UPA government on 28 February 2014.

• What is DA in salary?

  DA stands for Dearness Allowance, a cost of living adjustment allowance paid to government employees and pensioners. It is calculated as a percentage of basic salary to offset the impact of inflation.