Central Pay Commissions in India

1st Pay Commission (May 1946 – May 1947)

Chairman: Srinivasa Varadachariar

Key Features:

• Focused on rationalizing the pay structure after India’s independence.
• Introduced the concept of the “living wage.”
• Minimum salary: ₹55/month; maximum salary: ₹2,000/month.
• Beneficiaries: Around 1.5 million employees.

2nd Pay Commission (August 1957 – August 1959)

Chairman: Jagannath Das

Key Features:

• Focused on balancing the economy and living costs.
• Recommended the minimum wage of ₹80/month.
• Introduced the “socialistic pattern of society.”
• Beneficiaries: Approximately 2.5 million employees.

3rd Pay Commission (April 1970 – March 1973)

Chairman: Raghubir Dayal

Key Features:

• Recommended minimum pay of ₹185/month.
• Emphasized salary parity between public and private sectors.
• Addressed inequalities in the pay structure.
• Beneficiaries: About 3 million employees.

4th Pay Commission (September 1983 – December 1986)

Chairman: P.N. Singhal

Key Features:

• Recommended a minimum salary of ₹750/month.
• Focused on reducing disparities in salaries across ranks.
• Introduced a performance-linked pay structure.
• Beneficiaries: Over 3.5 million employees.

5th Pay Commission (April 1994 – January 1997)

Chairman: Justice S. Ratnavel Pandian

Key Features:

• Recommended a minimum pay of ₹2,550/month.
• Suggested reducing the number of pay scales.
• Focused on modernizing government offices.
• Beneficiaries: Around 4 million employees.

6th Pay Commission (October 2006 – March 2008)

Chairman: Justice B.N. Srikrishna

Key Features:

• Introduced Pay Bands and Grade Pay.
• Minimum salary: ₹7,000/month; maximum salary: ₹80,000/month.
• Emphasized performance-related incentives.
• Beneficiaries: Nearly 5 million employees.

7th Pay Commission (February 2014 – November 2016)

Chairman: Justice A.K. Mathur

Key Features:

• Minimum pay raised to ₹18,000/month; maximum pay to ₹2,50,000/month.
• Focused on a new pay matrix instead of the earlier grade pay system.
• Focused on allowances and work-life balance.
• Beneficiaries: Over 10 million (including pensioners).

8th Pay Commission announced on 16th January 2025

Conclusion:

The journey of India’s Pay Commissions, from the 1st Pay Commission in 1946 to the recently announced 8th Pay Commission in 2025, highlights the evolving focus on employee welfare, economic stability, and modernization of the pay structure. Each commission has played a pivotal role in addressing the needs of millions of government employees, adapting to the changing economic landscape, and striving for a balance between public and private sector parity. The recommendations have not only shaped the financial well-being of employees but have also significantly impacted administrative efficiency and governance. As we await the outcomes of the 8th Pay Commission, it is evident that these reforms continue to be crucial in the development of a fair and equitable compensation framework for India’s workforce.