PM Modi announces the 8th Pay Commission. Here's a look at the key changes and milestones in India's Pay Commissions over the years, benefiting millions of employees.
Prime Minister Narendra Modi recently approved the formation of the 8th Pay Commission to revise the salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. Here’s a brief overview of the previous seven Pay Commissions.
1st Pay Commission (May 1946 – May 1947)
Chairman: Srinivasa Varadacharia
- Focused on adjusting the pay structure after India’s independence
- Introduced the concept of a “living wage.”
- Minimum Salary: ₹55/month; Maximum Salary: ₹2,000/month
- Beneficiaries: Around 1.5 million employees
2nd Pay Commission (August 1957 – August 1959)
Chairman: Jaganath Das
- Aimed to balance the economy and living costs
- Suggested a minimum wage of ₹80/month
- Introduced a “socialistic pattern of society”
- Beneficiaries: Around 2.5 million employees
3rd Pay Commission (April 1970 – March 1973)
Chairman: Raghubir Dayal
- Proposed a minimum pay of ₹185/month
- Focused on salary parity between public and private sectors
- Addressed salary disparities
- Beneficiaries: About 3 million employees
4th Pay Commission (September 1983 – December 1986)
Chairman: P.N. Singhal
- Suggested a minimum salary of ₹750/month
- Focused on reducing pay disparities across ranks
- Introduced performance-linked pay structure
- Beneficiaries: Over 3.5 million employees
5th Pay Commission (April 1994 – January 1997)
Chairman: Justice S. Ratnavel Pandian
- Proposed a minimum pay of ₹2,550/month
- Suggested reducing the number of pay scales
- Focused on modernising government offices
- Beneficiaries: Around 4 million employees
6th Pay Commission (October 2006 – March 2008)
Chairman: Justice B.N. Srikrishna
- Introduced Pay Bands and Grade Pay
- Minimum Salary: ₹7,000/month; Maximum Salary: ₹80,000/month
- Focused on performance-related incentives
- Beneficiaries: Nearly 6 million employees
7th Pay Commission (February 2014 – November 2016)
Chairman: Justice A K Mathur
- Increased the minimum pay to ₹18,000/month and maximum pay to ₹2,50,000/month
- Proposed a new pay matrix replacing the grade pay system
- Focused on allowances and work-life balance
- Beneficiaries: Over 10 million (including pensioners)
8th Pay Commission (Announced on January 16, 2025)
- The latest Pay Commission will address salary and allowance revisions for employees and pensioners.
Also Read: How Much Salary Central Government Employees Can Expect from 8th Pay Commission?
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
