4th Pay Commission (1983-1986)

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4th Pay Commission (1983-1986)

Background

  • Established: June 1983
  • Chairman: P. N. Singhal
  • Objective: To review and revise pay structures, allowances, and benefits for central government employees to address inflation and improve living standards.

Key Recommendations

  1. Minimum Salary:

    • Increased to ₹750 per month, up from ₹185 in the 3rd Pay Commission.

  2. Pay Structure:

    • Introduced rationalized pay scales and increments across various grades.
    • Recommended time-bound promotions to boost employee morale and reduce stagnation.

  3. Dearness Allowance (DA):

    • Enhanced DA provisions to counter inflation, linking it more closely to the cost-of-living index.

  4. Pension Benefits:

    • Minimum pension set at ₹375 per month.
    • Introduced measures for better post-retirement financial security.

  5. Other Allowances:

    • Revised allowances like House Rent Allowance (HRA) and Transport Allowance (TA) to reflect changing urban and rural living costs.

  6. Performance:

    • Recommended linking productivity to incentives for employees in various departments to encourage efficiency.

Impact

  1. Improved Salaries:

    • Significant increase in salaries across all levels, helping employees manage inflation.

  2. Enhanced Social Security:

    • Better pension and retirement benefits improved financial stability for retired personnel.

  3. Time-Bound Promotions:

    • Helped reduce stagnation and boosted employee morale in government services.

  4. Economic Impact:

    • Implementation strained government finances but was largely welcomed by employees.

Challenges

  • High implementation costs led to criticism of its fiscal impact on the exchequer.
  • Employees in some sectors demanded more equitable pay adjustments, particularly in higher posts.

Would you like further details on any specific recommendations or the implementation process?

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