In India, the Pay Commission is established by the Government of India to review and make recommendations on the salaries, allowances, and pensions of central government employees and armed forces personnel. Here’s a brief overview of the 1st to 7th Pay Commission:
1st Pay Commission (1946-1947)
- Established: 1946
- Recommendations: Minimum wage of ₹55 per month.
- Impact: Focused on basic pay structure and standardization.
2nd Pay Commission (1957-1959)
- Established: 1957
- Recommendations: Minimum salary raised to ₹80 per month.
- Impact: Introduced concepts of efficiency and economy.
3rd Pay Commission (1970-1973)
- Established: 1970
- Recommendations: Minimum salary increased to ₹185 per month.
- Impact: Focused on the disparity between the highest and lowest paid employees.
4th Pay Commission (1983-1986)
- Established: 1983
- Recommendations: Minimum salary set at ₹750 per month.
- Impact: Recommended time-bound promotions for employees.
5th Pay Commission (1994-1997)
- Established: 1994
- Recommendations: Minimum salary increased to ₹2,550 per month.
- Impact: Substantial increase in pay and allowances; emphasis on rationalization.
6th Pay Commission (2006-2008)
- Established: 2006
- Recommendations: Minimum salary increased to ₹7,000 per month.
- Impact: Introduction of Pay Bands and Grade Pay system; higher allowances and pensions.
7th Pay Commission (2014-2016)
- Established: 2014
- Recommendations: Minimum salary raised to ₹18,000 per month.
- Impact: Abolition of Pay Bands and Grade Pay; introduced a new Matrix System for pay calculation.
Key Changes Over Time:
- Progressive Increase in Minimum Pay: From ₹55 to ₹18,000.
- Structure Evolution: Transition from rigid salary slabs to flexible Pay Bands and Matrix systems.
- Focus: Balancing efficiency, employee satisfaction, and fiscal discipline.
Would you like detailed information about any specific Pay Commission?
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