pay commission

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PAY COMMISSION  is an mechanism/System setup by Government of India in 1956 to upgrade the salaries , other monetary benefits, service benefits, pensionary benefits of all Central government employees and Armed forces. Alongside  State Governments, Union Territory Governments, Village Panchayat, University teachers, Semi government Bodies, government Corporations, Municipalities etc also determine their pay scales on par with Central government scales.

According to Wikipedia pay commission is setup by GOI and gives its recommendations regarding changes in salary structure of its employees since India’s independence. Seven pay commissions have been set up on a regular basis at the end of every decade, to review and make recommendation on the work and pay structure of all civil and armed forces of GOI. The commission generally takes two years to give its recommendations.


It is seen that pay scales from 1st pay commission to fifth pay commission had fixed increments every year and 13-14 stages were given for every payscale with efficiency bar crossing etc. Thereafter it would reach maximum of scale which means the government servant will be stagnated if he does not get promotion in normal course or by qualifying in promotional exams. In sixth pay concept of 6 pay scales was introduced. 5 posts were merged  in one pay scale but differentiated with grade pay and 3% or .03 increment on (pay+grade pay) was given every year i.e. .03(pay+grade pay) = new increment. The maximum of scale concept still prevails.

In the seventh pay the concept of grade pay has been merged i.e. 2.57 (pay+grade pay) as on 1.1.16 is new pay and it was fitted in pay matrix on the next stage. 40 stages exist and the maximum of scale is still prevailing. After Dearness allowance exceeds by 50% of basic pay it is seen that need for pay revision is felt and generally after 100% DA up gradation of pay scales is done to be on par with other commercial units or public sectors.

Why seventh pay fixation is not satisfactory?

Three reasons seventh pay fixation left the central government employees totally unsatisfactory  was 1. Only 14.27% increase that is said to be the lowest increase in the last 70 years. 2. The disparity between lowest and highest pay was brought down to 1:10 in fifth and sixth pay commission whilst seventh pay commission has increased the disparity say 1:14 3. The HRA rates has been lowered from 30%,20%,10% for Group A,B,C  cities to 24%,16%,8%.

Benefits of Pay Upgradation

The first two pay commissions targeted that the government servant and his family maintains subsistence level of living. The third and fourth pay commission targeted better living conditions beyond subsistence for government servant and his family. The fifth and sixth pay commissions targeted at improved living conditions and better output. The seventh pay commission targeted at performance efficiency, public opinion for promotions and reports of the individual and his office and also improving the morale of the government employee by raising his pay 2.57 times while there is a demand for 3.68 times pay from Union.

Actual benefits of pay commission are as follows

  1. Fight against corruption. : Good governance should ensure his subordinates are happy while expecting performance. Even Adamsmith in his Wealth of nations had indicated there should not be wide disparity in sharing of profits between owners and labourers in capitalistic countries. If pay is raised as per Union’s demand expecting small & big courtesies from public coming to get their work which still prevail in certain offices will stop.Union represents voice of  all government employees.
  2. Bribery, Notorious behavior and malafide intentions are controlled.
  3.  His self image improves with a better figure on his salary sheet. The concept ‘government office’ changes to ‘my office’ and a sense of importance toward work, colleagues, and superiors prevail. It is not work by force , fear or  favor but work for self. He takes responsibility for his actions. Healthy working conditions and good atmosphere is the criteria for better performance.
  4. His purchasing power increases so his living style improves. Even today the highest paid officer in central government dreaming of a bigger house/ flat in places like South Mumbai is just a dream.He can maximum buy a bigger house in Suburbs and a second home in  his village/remote town.
  5. Mode of travel to work changes. He may own a car and travel by his private car. However owning a BMW , Mercedes, or a helipad is just a dream.
  6. He can provide good schooling & college for his children because major part of the tution fees is reimbursed.  He can also take a loan for pursuing studies abroad for his children and also for himself.
  7. Good upbringing means healthy society.
  8. Travel to home town and other places is possible because of LTC . Now even travel to SAARC countries has been covered. Still LTC covering travel to all countries is not admissible.
  9. Health is another consideration. Both govt. employee and his family is covered by health schemes where there is a health centre to give regular checkups  for small ailments and for chronic ailments empaneled hospitals are available. However the only hurdle is that good hospitals come in and go out of panel because government rates are not revised regularly and there is a payment hitch also in case of retired people. This makes government employee, pensioners  and their family suffer.
  10. Retirement benefits is based on last pay. When last pay is high the retirement benefits also follow. A good retired life with a good pension and a lumpsum in bank to foot his bills if required, free health care , free life after shouldering all responsibilities is what a person aspires and his self dignity improves. He also becomes a productive person to society helping many NGO’s on a honorary basis.
  11. Government functions are in a framework of rules and regulations. Digitization has made enforcement of rules strictly possible. Similarly enhanced wages from lower cadre will allow strict implementation of rules and not it’s leakages, because major part of governmental work is done by staff.

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