Government constitutes 7th Pay Commission

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Government of India sets up pay commissions at regular (but not fixed) interval to revise the work and pay structure of employees of central government. And in step with the tradition, the government has appointed retired Supreme Court Judge Justice Ashok Kumar Mathur to chair the newly set up 7th Pay Commission.

Key Points:

  • The Commission has been asked to submit its report in 2 years. 
  • The recommendations of the commission is to be implemented from January 1, 2016.
  • The Pay Commission is set up every ten years (not fixed) by the government to revise the pay scales of its employees and its recommendations are usually adopted by states with some modification

What's in store?

  • It will revise the salaries of over 50 lakh central government employees, including those in defence and railways.
  • It is also expected to benefit about 30 lakh pensioners.

About:

  • Since India's Independence, seven pay commissions have been set up on a regular basis to review and make recommendations on the work and pay structure of all civil and military divisions of the Government of India. Let's have a brief look at them.

The first pay commission: 1947-59

  • It was set up in May 1946 under the chairmanship of Srinivasa Varadachariar.

The second pay commission: 1959-73

  • It was set up in August 1957 under the chairmanship of Jaganath Das.

The third pay commission: 1973-87

  • It was set up in April 1970 under the chairmanship of Raghubir Dayal.

Fourth Pay Commission : 1987-96

  • It was set up in June 1983 under the chairmanship of P N Singhal.

The Fifth Pay Commission: 1996-2006

  • It was set up in 1994 under the chairmanship of Justice S Ratnavel Pandian.

It recommended few anti-populist but economic measures to cut down on public spending like...

  • To slash government work force by about 30%.
  • To not recruit about 3,50,000 vacant position.
  • To reduce the number of pay scale from 51 to 34.
  • Obviously they all were scrapped.

The Sixth Pay Commission: 2006-16

  • It was set up in 2006 the chairmanship of Justice BN Srikrishna.
  • It resulted in significant hike in the salaries of government employees amidst the growing demand that soaring inflation and rising pay in the private sector are taking the charm away from the public sector jobs.

Few notable achievements

  • It succeeded in removing ambiguity in respect of various pay scales by reducing number of pay scales and introducing the idea of pay bands.
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