2nd Pay Commission (1957-1959)

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2nd Pay Commission (1957-1959)

Background

  • Established: August 1957
  • Chairman: Jagannath Das
  • Objective: To review the pay scales introduced by the 1st Pay Commission and align them with changing economic conditions and inflation.

Key Recommendations

  1. Minimum Salary:

    • Increased to ₹80 per month from ₹55.

  2. Pay Scales:

    • Revised and rationalized pay scales across different grades and services.
    • The commission aimed to bridge gaps between lower and higher levels of employees.

  3. Work Efficiency:

    • Introduced principles of efficiency and economy, emphasizing performance in government service.

  4. Dearness Allowance (DA):

    • A mechanism to provide relief from inflation through periodic revisions in DA was formalized.

  5. Retirement Benefits:

    • Enhanced pensions and other post-retirement benefits to ensure financial security for retired employees.

Impact

  1. Improved Pay Levels:

    • A substantial increase in salaries for lower-paid employees.

  2. Focus on Equity:

    • Attempted to reduce disparities between different levels of government employees.

  3. Recognition of Inflation:

    • Formalized inflation-linked pay adjustments through DA.

  4. Economic Impact:

    • The government incurred higher costs to implement the recommendations, straining fiscal resources.

Challenges

  • Balancing government resources with the need for competitive pay structures.
  • Some employees felt the increases were insufficient to cope with inflation.

Would you like to dive into how the recommendations were implemented or their impact on specific employee groups?

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