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History of Central Pay Commissions

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  • Government of India have set up six pay commissions at regular intervals to review and recommend wage structure for all civil and military divisions including Railways.
  • These Pay commissions examine various issues such as pay  and allowances, retirement  benefits, conditions of service. promotion policies. Etc,  and  submit recommendations.
  • As Fifth Pay Commission observed “ Pay Commission is a peculiarly Indian institution”.
  • Pay scales existed before the advent of Pay Commissions was the 1934 Scales. First Commission  scales(known as ‘Prescribed Scales”) replaced the 1934 Scales.

First Pay Commission

  • The first pay commission was constituted in 1946 with Srinivasa Varadacharia as Chairman.
  • The commission’s recommendations were based upon the idea of “living wages” to the employees.
  • The commission simplified the wage structure of Railway employees and number of scales were reduced to 30. The minimum basic pay for Class IV staff has been raised from Rs. 10/- to Rs. 30/- and for Class III from Rs. 35/- to Rs. 60/- per month.
  • The Commission has fixed Rs. 55/- as minimum wage (Rs. 30 plus Rs. 25 as Dearness Allowance). The recommendations were accepted and implemented in 1946.

Second Pay Commission

  • The second pay commission was set up in August 1957 with Justice Jagannadha Das as Chairman.
  • The Commission gave its report after two years.
  • The commission stated that the pay structure and the working conditions of the government employee should be designed in a way so as to ensure efficient functioning of the system by recruiting persons with a minimum qualification.
  • The Commission revised the pay scales by merging 50% of the Dearness Allowance with basic Pay and it recommended Rs. 80 as the minimum remuneration(Basic Pay Rs. 70 plus DA Rs.10/-) payable to a Government employee.
  • The commission rationalized the pay structures by reducing further the number of scales,

Third Pay Commission

  • The third pay commission set up in April 1970 with Justice Raghubir Dayal as  chairman.
  • The Commission gave its report in March 1973.
  • The main demand of employees for a need based minimum wage as per the norms of 15 th Indian Labour Conference was accepted in principle even though Commission evolved its own concept of need based wage.
  • Commission recommended Minimum remuneration of Rs. 185 per month.
  • The third pay commission added three concepts of inclusiveness, comprehensibility, and adequacy for pay structure to be sound in nature. By taking the view of employee’s views Government modified some of the recommendations of the Commission and minimum wage was raised from Rs. 185 per month to Rs. 196/- per month.
  • Pay fixation formula has also been made more liberal.

Fourth Pay Commission

  • Constituted in June 1983, chairman of fourth pay commission was P N Singhal.
  • Its report was given in three phases within four years and its recommendations were implemented with effect from 1-1-1986.
  • Rs. 750/- was the minimum pay recommended by the Commission.
  • The Fourth CPC  had recommended  that  there  should be  a permanent machinery to  undertake periodical  review of pay and allowances  of Central Government  employees which got never implemented.

Fifth Pay Commission

  • The Fifth Pay Commission was set up in 1994 with  Justice S. Ratnavel Pandian as Chairman.
  • The commission gave its report in January 1997. Government accepted most of the recommendations and announced  the package in July 1997.
  • The recommendations were implemented with effect from 1-1-1996.
  • The minimum Starting Pay has been revised from Rs. 750/ to Rs. 2550/-
  • It recommended to reduce the number of pay scale from 51 to 34.
  • One of its recommendations was to slash government work force by about 30%.
  • The Commission also suggested that the grant of salary hikes to employees be linked to issues of downsizing government, efficiency and administrative reforms.

Sixth Pay Commission

  • In July 2006, the sixth pay commission has been set up under Justice B.N.Srikrishna as Chairman.
  • The Sixth Pay Commission mainly focused on removing ambiguity in respect of various pay scales and mainly focused on reducing number of pay scales and bring the idea of pay bands.
  • It recommended for removal of Group-D cadre.
  • Commission proposed minimum salary at the entry level of PB-1 pay band to be Rs.6660 (Rs.4860 as pay in the pay band plus Rs.1800 as grade pay) and  maximum salary at the level of Secretary/equivalent  as Rs.80000. The minimum: maximum ratio is 1:12

Increase in Minimum Pay of Railway Employee From 1934- to 2006

 

Year

Minimum Pay

1934 Scales

1934

Rs.10

First Pay Commission

1947

Rs. 30

Second Pay Commission

1959

Rs. 70

Third Pay Commission

1973

Rs. 185

Fourth Pay Commission

1986

Rs. 750

Fifth Pay Commission

1996

Rs. 2550

Sixth Pay Commission

2006

Rs. 6660

 

Comments

sir i have promoted on

sir i have promoted on 30.11.2006 in the grade rs.7450-11500- and basic pay was 8575.ihave opt the fixation from the date of promotion for six pay commission. what will be my basic pay on 30.112006 in the new scale 9300 -34800, whether i am entitle to get 3% inrement on 8575 x 1.86=15950-

grade pay is 4800.please tell me also  the basic pay on 1.7.2007

Sir,      I was promoted in

Sir,

     I was promoted in Gr Rs.650-10500 in sep-2005 I opted for fixation of pay in Feb-2006 as my increment date in Gr. Rs 5500-9500 was in Feb, later in 2008 when 6th PC I reopted my fixation from the date of Promotion as the employess whoes incremnt fell in Feb to June were not getting promoition, now the the orders of re-option has come Personnel Branch has send it for vetting the same, but the Accounts department is not willing, please advice me wether I will get my pay refixed or not.

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