8th Pay Commission: A series of meetings regarding the 8th Pay Commission is currently underway. At present, Central Government employees receive their salaries based on the recommendations of the 7th Pay Commission. It is worth noting that the tenure of a Pay Commission is generally considered to be 10 years. Since the current commission came into effect in 2016, its term is logically expected to extend until 2026.
Now that the tenure of the 7th Pay Commission is drawing to a close, all eyes are fixed on the 8th Pay Commission. In the meantime, let us walk you through the journey from the first Pay Commission to the seventh—explaining how they originated and how the framework of the Pay Commission has evolved over time.
Seven Pay Commissions Constituted Since Independence
Since India’s independence, a total of seven Pay Commissions have been constituted. The First Pay Commission was implemented in May 1946, while the Seventh Pay Commission was implemented in 2014–15. You can easily understand this progression through the table provided below, based on a report by Upstox.
| Central Pay Commission | Minimum Pay (in Rupees) | Maximum Pay (in Rupees) | compression ratio |
| First Pay Commission | 55 | 2000 | 36.4 |
| Second Pay Commission | 80 | 3000 | 37.5 |
| Third Pay Commission | 196 | 3500 | 17.9 |
| Fourth Pay Commission | 750 | 8000 | 10.7 |
| Fifth Pay Commission | 2550 | 26000 | 10.2 |
| Sixth Pay Commission | 7000 | 80000 | 11.4 |
| Seventh Pay Commission | 18000 | 225000 | 12.5 |
The Initial Framework of the Pay Commission
From the First Pay Commission through to the Seventh, numerous improvements were introduced to the salary structure, with the primary objective of enhancing employees’ salaries, Dearness Allowance (DA), and overall benefits. Initially, the salary structure prescribed by the Pay Commissions was quite simple, comprising a basic pay component along with a limited number of allowances. However, as the burden of inflation began to weigh heavily on people’s finances, the Pay Commission responded by periodically revising employees’ salaries.
Increased Emphasis on Dearness Allowance
During the Third and Fourth Pay Commissions, greater emphasis was placed on the Dearness Allowance (DA) to ensure that the rising cost of living did not adversely impact the financial stability of employees. Subsequently, the Fifth Pay Commission further streamlined the salary structure and incorporated several new allowances into the framework. Subsequently, the Sixth Pay Commission was introduced, which brought about a major change by implementing the Pay Band and Grade Pay systems. This made salary calculation more transparent and systematic.
