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SSC Current Affairs


National

8th Pay Commission



Why in the news?
The Union government announced the constitution of the 8th Pay Commission on the 16th of January 2025.
Aim:
A Pay Commission, set up by the government of India, decides the salary and compensation of Central government staffers and allowances of pensioners. The 8th Pay Commission will recommend revisions in the salary and pension structure of the beneficiaries, resulting in a hike in the remuneration and allowances.
Key Points:
The implementation of the pay commission’s recommendations results in increased consumption and economic growth, with an improved quality of life for government employees. Generally, every 10 years, the central government implements a pay commission to revise employee remuneration.
There is no obligation on the government to accept the recommendations of the pay commission.
Since 1947, seven Pay Commissions have been constituted, with the last one constituted in 2014 and implemented on January 1, 2016. The chairman of the 7th Pay Commission is Justice Ashok Kumar Mathur. It’s tenure will end in 2026.
1st Pay Commission (1946):
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.
2nd Pay Commission (1957):
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 (1970):
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 measure 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 (1983):
Implementation Year: 1986
Key Features:
Minimum salary increased to Rs 750 per month.
First attempt at comprehensively restructuring pay scales.
Recommendations for increasing housing and travel allowances.
Impact:
The substantial pay hike addressed inflation and improved employee satisfaction. However, the implementation was criticized for delays.
5th Pay Commission (1994):
Implementation Year: 1997
Key Features:
Minimum salary raised to Rs 2,550 per month.
Recommended merging 50% of DA with basic pay for better financial stability.
Focused on employee welfare schemes.
Impact:
A significant increase in salaries improved the purchasing power of employees. However, the recommendations led to increased financial strain on the government.
6th Pay Commission (2006):
Implementation Year: 2008
Key Features:
Minimum salary increased to Rs 7,000 per month.
Introduction of Pay Band and Grade Pay system for streamlining salary structures.
Emphasis on performance-based incentives.
Impact:
The introduction of the Pay Band system simplified salary structures and provided clarity on career progression. Despite criticism of delayed implementation, it was largely seen as employee-friendly.
7th Pay Commission (2013):
Implementation Year: 2016
Key Features:
Minimum salary raised to Rs 18,000 per month.
Removal of Pay Band and Grade Pay system, replaced by Pay Matrix.
DA rates to be revised biannually.
Recommendations for improving pension benefits.


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