Pay Commission

Pay Commission is set up intermittently by Government of India, and gives its recommendations regarding changes in salary structure of its employees. 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. Headquartered in Delhi, the Commission is given 18 months from date of its constitution to make its recommendations.

The first pay commission was established on January, 1946 and it submitted its report in May, 1947 to the interim government of India. It was under the chairmanship of Srinivasa Varadachariar. The mandate of 1st (nine members) was to examining and recommending emolument structure of Civilian employees.

Post War Pay Committee for the armed Forces

Armed forces emoluments structure was determined not by the 1st Central Pay Commission(CPC) but by a Departmental Committee which had service members. The task of this committee was to make recommendations "in the structure of emoluments and benefits of service personnel in the light of the recommendations made by the pay commission for civilian employees". The First Pay Committee, set up after the 1st pay Commission, was called the "The Post War Pay Committee for the armed Forces". The New Pay Code effective from 1 July 1947 was based on the recommendations of this Committee. The pensionary benefits were examined by separate committee called " Armed Forces Pension Revision Committee (1949–50)".

The second pay commission was set up in August 1957, 10 years after independence and it gave its report after two years. The recommendations of the second pay commission had a financial impact of ₹ 39.6 crore. The chairman of the second pay commission was Jagannath Das.The second pay commission reiterated the principle on which the salaries have to be determined. It stated that the pay structure and the working conditions of the government employee should be crafted in a way so as to ensure efficient functioning of the system by recruiting persons with a minimum qualification.

Raghuramiah Committee

The Departmental Pay Committee, set up after the 2nd pay Commission, was called , the Raghuramiah Committee(1960), which had service representatives. It examined armed forces emoluments and made recommendations .

The third pay commission set up in April 1970 gave its report in March 1973 i.e. it took almost 3 years to submit the report, and created proposals that cost the government ₹ 144 crore. The chairman was Raghubir Dayal. The third pay commission (3CPC) added three very important concepts of inclusiveness, comprehensibility, and adequacy for pay structure to be sound in nature. The third pay commission went beyond the idea of minimum subsistence that was adopted by the first pay commission. The commission report say that the true test which the government should adopt is to know whether the services are attractive and it retains the people it needs and if these persons are satisfied by that they are getting paid.

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