The central government has recently introduced the 8th pay commission, prompting increased public interest in the pay commission system. To date, seven pay commissions have been established in the country, each resulting in salary increases for central government employees. We have previously discussed the first and second pay commissions following the country’s independence. Now, we will focus on the third pay commission that was implemented.
When was the Third Pay Commission established? What were the salaries of central government employees prior to its introduction? What was the extent of the salary increase? How does this compare to current salaries? Let’s explore these questions.
What was the salary prior to the 3rd Pay Commission?
Before the 3rd Pay Commission was established, the Second Pay Commission was formed in August 1957, with its term concluding in August 1959. This commission adopted a socialist model, emphasizing the need to balance economic factors with the cost of living. At that time, the Second Pay Commission recommended a minimum salary of Rs 80 per month for central employees, reflecting a 14.2 percent increase in their salaries.
The 3rd pay commission was established in the country from April 1970 to March 1971, with Raghubir Dayal serving as its chairman. This commission focused on achieving pay equality between the private and government sectors and aimed to address the shortcomings in the existing pay structure. As a result of its recommendations, the salaries of central employees saw an increase of 20.6% compared to the previous pay commission.
Following the implementation, the minimum salary for employees rose significantly from Rs 80 to Rs 185. Approximately 30 lakh employees benefited from this pay commission, leading to a financial impact of Rs 12.8 billion.