WHAT IS PAY COMMISSION ?-is it only revision of pay and pension?

Seeing the news about pay commission in our news daily I too thought of writing this . I am a government pensioner. How  we look out for this commission setup and also expect a big rise.  let me give some details about seventh pay commission .

First of all  Government of India set up this  mechanism/System called Pay commission, in 1956. Furthermore,  Pay Commission gives

1.Upgradation of salaries,  

2.other monetary grants

3. service improvements

4. pension upgradation

benefitting 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.

Also according to Wikipedia , Pay commission give its recommendations regarding changes in salary structure of its employees.

 So, now Seven pay commissions were set up on a regular basis .

Finally, Pay Commission reviews and make recommendations about work and pay structure of all civil and armed forces of GOI .

Almost, commission generally takes two years to give its recommendations.


is only revising pay and pension work of pay commission

                I st to 5th pay commission

Pay scales from 1st pay commission to fifth pay commission had fixed increments .

This point I will explain with example.

For eg 2000-200-3600-EB-300-5100 I have given a fictitious scale to explain increment and EB i.e efficiency bar.

Regular yearly  increments are Rs200/- up to Rs3600/- starting from Rs2000/- which is beginning of scale.

After 7 yearly increment Rs3600/- is reached.

After Rs3600/- appointing authority gives EB crossing certificate.

 If EB crossing certificate is not given then the employee stagnates at Rs3600/-.

However, Such situation generally do not arise. 

So,there are 13 stages in this scale which means it allows 13 yearly increments.

So,every pay scale had 13-14 stages from Ist to Vth pay commission along with efficiency bar crossing etc.

Thereafter on  reaching maximum of scale  the government servant stagnates.

He remains stagnated unless he receives  promotion in normal course or qualifies promotional exams or his upgraded pay scales of new pay commission or he goes to other office in higher post  on deputation.

                                 6th pay commission

In sixth pay concept of 6 pay scales are introduced.

5 posts are merged  in one pay scale and differentiated with grade pay.

3% or .03 increment on (pay+grade pay)was  given every year.

.03(pay+grade pay) = new increment.

The maximum of scale concept still prevails

                                      7th Pay Fixation

In the seventh pay the concept of grade pay is merged i.e. 2.57 (pay+grade pay) as on 1.1.16 is new pay from 1.1.16 and  fitted in pay matrix on  next stage.

40 stages exist and maximum of scale is still prevailing.

                           Dearness Allowance

Half yearly Dearness allowance is given based on Price Index .

This is a solution to beat inflation.

After Dearness allowance exceeds 50% of basic pay need for pay revision is felt .

After 100% DA up gradation of pay scales is  actually is done to be on par with other commercial units or public sectors.

Also read Central pay commission – History

Why seventh pay fixation is not satisfactory? 

 Central government employees are totally unsatisfactory due to the following three reasons.  

1. Only 14.27% raise in pay, the lowest increase in the last 70 years.

2. The difference between lowest and highest pay was  1:10 in fifth and sixth pay commission increased to 1:14

3. The HRA rates lowered from 30%,20%,10% for Group A,B,C  cities to 24%,16%,8%.

4. Union demands  of 3.68 times  pay as on 1.1.16 is not given instead 2.57 times  pay as on 1.1.16 is given 

5. Minimum pay is Rs18000/- whilst Union demands Rs26000/- to keep the ratio of lowest and highest pay scale intact.

Gr A,B,C places are differentiated on the basis of population.

Benefits of Pay Upgradation

The first two pay commissions provided subsistence wages for government employee and his family.

The third and fourth pay commission provided better living conditions beyond subsistence for government employee and his family.

The fifth and sixth pay commissions provided  improved living conditions and better output.

The seventh pay commission targeted at performance efficiency, public opinion for promotions, reports of  individual and office.

To improve the morale of the government employees 2.57 times of pay/pension as on 1.1.16 was given.

However Union, representative of employees  demanded 3.68 times  of pay/pension as on 1.1.16.

Actual benefits of pay commission are as follows.

is revision of pay & pension the immediate benefit ? Yes.

The outcome of this preliminary benefit along with other benefits are given below.

                      Fight against corruption

First of all,  Good governance should ensure  subordinates are happy along with performance.

Even Adam smith in his Wealth of nations  indicated  wide disparity in sharing of profits between owners and labourers is disastrous .

Union represents voice of  all government employees. So Government must fulfil Unions legitimate demand. 

 Thus pay hike will stop employees from expecting small & big courtesies from public for doing work which still prevail in certain offices .

Bribery, Notorious behavior and other malafide intentions are  also controlled.

                    Improvement in self image

Self image  of employee 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 work for self not  force, fear or  favor .

He takes responsibility for his actions.

However, criteria for better performance is, healthy working conditions and good atmosphere.

                          Lifestyle improvement

His living style improves because  of purchasing power .

Even today the highest paid officer in central government cannot think of buying flats in South Mumbai.

Affording a bigger house in suburbs along with second home in village is possible.

Mode of travel to work changes.

Also he may travel in his private car.

However owning a BMW , Mercedes, or a helipad is beyond reach.

He can provide good schooling & college for his children because major part of the tuition fees is reimbursed.

 He can take a loan for pursuing studies abroad for his children and also for himself.

Good upbringing means healthy society.

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.

Better Health conditions

Health is another consideration.

Both govt. employee and his family is covered in health schemes .

Pensioners and their family are also covered.

Pensioners can avail medical facilities in empaneled hospitals on non payment basis.

There is  health center to give regular checkups  for small ailments.

For chronic ailments empaneled hospitals are available.

However the only hurdle is that good hospitals come in and go out of panel.

So continuity in treatment  of patient is impaired.

Patient stops regular follow ups in chronic ailments.  The high hospital rates are not affordable.

The private hospital rates are over and above the Cghs prescribed rates.

Since government rates are not revised regularly the CGHS prescribed rates is very low.

Good private Hospitals are not convenient with these government rates.

In case of retired person, government takes the initiative of paying  treatment costs.

However the hospital authorities complain of non receipt of dues. 

So they either cancel their panel listing or dilly dally  patients. 

This makes government employee, pensioners  and their family suffer on account of health .

Retirement benefits

Retirement benefits is based on last pay.

When last pay is high the retirement benefits also follow.

A good retired life means

1. good pension with  lumpsum in bank to foot his bills if required.

2. Free health care , free life after shouldering all responsibilities.

A retired person aspires this feature of retired life  and thus his self dignity improves.

He also becomes a productive person to society helping many NGO’s on a honorary basis.


Government functions are in a framework of rules and regulations.

Digitization enforces rules strictly .

Similarly enhanced wages will ensure strict implementation of rules and not it’s leakages.

Staff do major part of governmental work .

 Increasing fitness factor and raising pay to motivate everybody. 

Exploit their potential and pacify their ego .

Fulfil their legitimate demand .


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