New Delhi: Each year, the Government of India employs millions of people for its various posts. To keep a check on its employees’ salary structure, it becomes mandatory to set up a Pay Commission in compensation management.

The Pay Commission is an administrative system governed by the Government of India that takes part in revising the salary structure of around 5.5 million central government employees. The government of India has set up 7 Pay Commissions since 1947. The latest one was set up on 8th February 2014 being the 7th Pay commission.

The Central Government establishes Pay Commissions every 10 years. It is headquartered in Delhi.

Important features of 7th Pay Commission

1. Minimum Pay- The minimum pay for government employees is recommended to be at Rs.18,000 per month

2. Maximum Pay- At the pinnacle, it should be Rs.2,25,000 per month and Rs.2,50,0000 per month for the Cabinet Secretary and the same for the others posted at the same pay level.

3. Annual Increment- Suggesting annual increment rate to be at 3 per cent

4. Illness and Injury leave related to Work- Pay commission takes full care of Central Government employees, granting full pay and allowances to those who get hospitalised due to work

5. Dearness Allowance(DA)- DA witnessed a hike of 2% recently, benefitting more than 50 lakh Central Government employees and around 55 lakh pensioners and staffers.

6. House Rent Allowance- The Pay Commission recommends increasing HRA by 24%. Stating that HRA will increase to 27%, 18%, and 9% when DA crosses 50%.

Categories that come under the Pay Commission

• Central Government employees
• Individuals belonging to All India Services
• Personnel of Union Territories
• Personnel of the Indian Audit and Accounts Department
• Members of Regulatory Bodies
• Officers and Employees belonging to Defense Forces

Pay Commission Updates

• Central Government increased the DA (Dearness Allowance)
• Increase in the retirement age for the constable to commandant(senior superintendent of police) from 57 years to 60 years.

Importance

Not only Pay Commission impacts the lives of millions of government employees across India but it has a huge impact on the fiscal deficit position and the GDP of the country.