Wednesday, September 17, 2014

History of Earlier Pay Commissions in India

Since India’s Independence, seven pay commissions have been set up on a regular basis to review and make recommendations on the work and pay structure of all civil and military divisions of the Government of India.

Historically the Central Government has been setting up the Pay Commissions after a period of almost ten years. This is more of precedence than a statutory requirement. Government is not bound by any law or regulation to set up the 
Pay Commission after ten years.

The objective of the Pay Commission is to bring parity in the salaries and perks of Government Servents with their private sector counterparts and bring a sort of compatibility with the trends in the price rise of different commodities, thus encouraging them to lead an honest life.

The roots of practise of setting up Pay Commissions goes back to British Period when Royal Commissions were set up for various purposes including Pay Revisions– e.g. Aitcheson Commission (1886-87) and Islington Commission (1912-13).

At present India is perhaps the only country where this practice still followed. Even Britishers have long discontinued with this system.


Following is a brief summary of all of the Central Pay Commissions in India

PAY
COMMISSION
 WAS
 CONSTITUTED  IN
SUBMITTED
 REPOR IN
CHAIRMAN
FINANCIAL
BURDEN   



% HIKE
First   
      May 1946.
In One Year
Srinivasa Varadachariar

Second
Aug. 1957
Two Years
Jaganath Das
Rs. 396 million.
Third
Apr. 1970
Mar. 1973
Raghubir Dayal
Rs. 1.44 billion
Fourth
Jun. 1983
Four Years
P N Singhal
Rs.12.82 billion
Fifth
1994
Jan. 1997
Justice S. Ratnavel Pandian
Rs. 17,000 crore
99%
Sixth
Jul. 2006
Apr. 2008
Justice B N Srikrishna

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