Prime Minister Narendra Modi has given the green light for the establishment of the 8th Pay Commission, aimed at revising the salaries of central government employees and the allowances for pensioners. This initiative is anticipated to positively impact around 5 million central government workers and 6.5 million pensioners. The 7th Pay Commission was set up in 2014, with its recommendations taking effect from January 1, 2016, and it is scheduled to conclude in 2026. Typically, the central government forms a Pay Commission every decade to adjust employee salaries. Since 1947, there have been seven Pay Commissions. Here’s a look at the duration of each Pay Commission and their key recommendations.
1st Pay Commission
Duration: May 1946 to May 1947
Chairman: Srinivas Varadacharya
Post-independence, the emphasis was on streamlining the wage structure.
Introduced the idea of ‘Livelihood Reward’.
Minimum Salary: Rs 55 per month; Maximum Salary: Rs 2,000 per month.
Beneficiaries: Approximately 1.5 million employees.
2nd Pay Commission
Duration: August 1957 to August 1959
Chairman: Jagannath Das
Focused on achieving a balance between the economy and living costs.
Recommended a minimum wage of Rs 80 per month.
Adopted a socialist framework.
Beneficiaries: Around 2.5 million employees.
3rd Pay Commission
Duration: April 1970 to March 1973
Chairman: Raghubir Dayal
Recommended a minimum wage of Rs 185 per month.
Stressed the importance of pay equality between public and private sectors.
Addressed salary structure disparities.
Beneficiaries: About 3 million employees.
4th Pay Commission
Duration: September 1983 to December 1986
Chairman: P.N. Singhal
Recommended minimum wage: Rs 750 per month.
Aimed at minimizing pay gaps across various ranks.
Introduced a performance-based pay structure.
Beneficiaries: Over 35 lakh employees.
5th Pay Commission
Duration: April 1994 to January 1997
Chairman: Justice S. Ratnavel Pandian
Recommended minimum wage: Rs 2,550 per month.
Proposed a reduction in the number of pay scales.
Focused on modernizing government operations.
Beneficiaries: Approximately 40 lakh employees.
6th Pay Commission
Duration: October 2006 to March 2008
Chairman: Justice B.N. Shri Krishna
Introduced ‘Pay Band’ and ‘Grade Pay’ systems.
Minimum Salary: Rs 7,000 per month; Maximum Salary: Rs 80,000 per month.
Stressed the importance of performance incentives.
Beneficiaries: Nearly 60 lakh employees.
7th Pay Commission
Duration: February 2014 to November 2016
Chairman: Justice A. K. Mathur
Increased minimum wage to Rs 18,000 per month; Maximum salary: Rs 2,50,000 per month.
Recommended a new pay matrix to replace the grade pay system.
Emphasized perks and work-life balance.
Beneficiaries: More than one crore, including pensioners.