8th Pay Commission: The salary structure for central government employees in India has evolved significantly over the years — from Rs 55 per month in 1946 to Rs 18,000 per month currently. Various pay panels recommended salary and pension hikes periodically, taking into consideration various economic factors from time to time.
Each Pay Commission aimed to balance the interests of employees with the financial prudence of the government, leading to changes in salary scales, allowances, and overall benefits.
With the recent announcement of the 8th Pay Commission, slated for implementation from January 1, 2026, it is worth revisiting the journey of salary revisions from the 1st to the 7th Pay Commission.
According to reports, under the 8th Pay Commission, the basic pay of central government employees will increase from Rs 18,000 per month to over Rs 51,000, based on a new fitment factor. Here’s a look at the seven Pay Commissions so far and the salaries recommended by them:
1st Pay Commission implementation year: 1947
Key features:
-Focused on improving living standards for employees.
-Minimum salary was fixed at Rs 55 per month.
-Emphasis on equitable pay structure.
-Ratio of the highest salary to the minimum salary was 1:41.
Impact:
Although the recommendations addressed post-independence challenges, they highlighted the need for a better salary structure for lower-income groups.
Also read: 8th Pay Commission: Govt to remove a number of allowances applicable to employees, pensioners?
2nd Pay Commission implementation year: 1959
Key features:
-Minimum salary raised to Rs 80 per month.
-Focus on reducing disparities in wages.
-Recommended provisions for family allowances and retirement benefits.
Impact:
The changes improved financial security for employees, reflecting the growing economic challenges of the 1950s.
3rd Pay Commission implementation year: 1973
Key features:
-Minimum salary increased to Rs 185 per month.
-Addressed cost of living by introducing dearness allowance (DA) as a relief against inflation.
-Focused on pay parity between various groups of employees.
Impact:
Introduction of DA was a game-changer, ensuring that employees’ salaries were adjusted in line with inflation rates.
4th Pay Commission implementation year: 1986
Key features:
-Minimum salary increased to Rs 750 per month.
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