Friday, September 01, 2006

Pay Commision History

Pay Commissions are periodically constituted to examine various issues such as pay and allowances, retirement benefits, conditions of service, promotion policies, etc. of the Central Government employees. There is no stipulation regarding any specific time period for constitution of a Pay Commission for Central Government employees. Till now five Central Pay Commissions have been constituted whose details are as below:-
First Pay Commission
  • Date of Appointed : May, 1946
  • Date of Submission of Report : May,1947
  • Financial Impact (Rs. in Cr.) : NA
Second Pay Commission
  • Date of Appointed : August, 1957
  • Date of Submission of Report : August 1959
  • Financial Impact (Rs. in Cr.) : 39.62
Third Pay Commission
  • Date of Appointed : April, 1970
  • Date of Submission of Report : March, 1973
  • Financial Impact (Rs. in Cr.) : 144.60
Fourth Pay Commission
  • Date of Appointed : June, 1983
  • Date of Submission of Report : 3 Reports submitted in June, 1986; Dec. 1986 and May, 1987
  • Financial Impact (Rs. in Cr.) : 1282
Fifth Pay Commission
  • Date of Appointed : April, 1994
  • Date of Submission of Report : January, 1997
  • Financial Impact (Rs. in Cr.) : 17,000
Thus successive Central Pay Commissions were set up in the past at intervals of 10 to 13 years. The last Central Pay Commission was constituted in April, 1994.
Source : Press Information Bureau, Govt. of India


  1. Anonymous7:34 PM

    You are wrong with regard to Date of First Pay Commission- It is May 1946 NOT 1949 as mentioned!!

  2. Anonymous8:15 PM

    Pay Commission History vis a vis Armed Forces.
    Read this article by Lt gen Harwant singh on Pay commissions

    The Tribune 17 Feb 2007

    Defence Forces and Pay Panels
    Persistently wronged in the past
    Lt-Gen Harwant Singh ( Retd )
    The government has constituted the Sixth Pay Commission to review the
    pay and allowances etc of central government employees. Many
    economists have questioned the wisdom of constituting a pay commission
    at this stage and phase of the country's economy. Be that as it may,
    here we are concerned with the expectations and hopes of the defence
    personnel who have been persistently wronged in the past.
    The defence forces constitute nearly forty percent of the central
    government employees; their officers, forming the largest officer
    cadre amongst the central services. Consequently, better part of the
    exertions of a pay commission ought to relate to their case. The Fifth
    Commission's report runs into over 2100 pages, in three volumes, out
    of which, just over 50 pages pertain to the case of defence forces.
    The Commission assembled a staff of nearly 150 officers to assist it,
    in working out the details of pay, allowances, etc of central
    government employees, and prepare the report. It took officers from
    Postal Service, BSF, Forest Service, etc for this task,but none from
    the defence services. The Committee of secretaries constituted to
    review the recommendations of the Fifth Pay Commission, took an
    officer from the police on the committee, but none from the defence
    services. Besides much else, the Commission gave a brigadier more
    pension than a major-general.
    A brief review of the attitude of the previous pay commissions and the
    government, towards the defence forces would be in order.
    The Post War Committee, ostensibly to rationalize the pay structure of
    the armed forces, linked it to that of the civil services as
    determined, basing on the report of the First Pay Commission. On the
    pretext of simplicity, 'all inclusive' pay was introduced; withdrawing
    all allowances.
    No such reduction was introduced in the case of other civil services.
    This came to be known as New Pay Code, which was not applied to the
    King's Commissioned Officers, ( KCIOs) Since they formed the top
    echelons in the army then, their silence was bought in this manner.
    Later some allowances had to be re-introduced. In the case of those
    below officer rank, their pay
    was dropped by one third. However, they were given a princely sum of
    Rs 5 per month to compensate for hardships of military life, but there
    was nosuch relief for officers.
    Surprisingly, the case of defence services was not looked at by the
    pay commission, but by a departmental committee of the MoD. Same
    practice was followed in the case of the Second Pay Commission and
    nothing came of it. The Third Pay Commission was, for the first time,
    entrusted with the task of determining pay and allowances of defence
    personnel. The
    Commission wanted to hear the defence services case directly from the
    armed forces. However, the MoD came up with the preposterous
    contention that the,requirement of discipline in the armed forces does
    not permit them to put up their case direct to the Pay Commission.?
    Further the Pay Commission was not required to go into the issue of
    service conditions of defence personnel but was to take these as
    'given.' Equally unbelievable is the acceptance of this untenable and
    absurd stance of the MoD by the defence forces on the one hand and by
    the Commission on the other.
    This methodology resulted in the creeping back of the 'all inclusive'
    concept with the attendant disadvantages and washing away of the
    corrections that had been brought in to soften the 'all inclusive'
    character of the pay structure.
    The Third Pay Commission, after examinations of the advantages and
    disadvantages of military career, came up with the incredulous
    conclusion that advantages outweigh advantages. Truncated careers,
    extremely limited promotions, long separations from families,
    limited family accommodation in peace stations, hard living conditions
    in uncongenial and difficult areas, risk to life and limb and a
    hundred other travails, which are associated with military life and
    recognized the world over, were seen as great benefits of military
    career. In every country of the world these travails are termed as 'X'
    factor and fully compensated
    through pay, perks, pensions and relief in income tax etc, but not in
    No other country in the world during the last hundred years has been
    continuously in a state of war for nearly sixty years as the Indian
    Yet, in the views of the Third Pay Commission there was no
    justification for introducing 'X' factor for the military.

    To compensate for limited promotions in the defence forces and to
    soften the blows of the earlier Pay Commissions, the service chiefs,
    at best, were able to get 'running pay band' for officers from the
    Fourth Pay Commission.
    Further upto the rank of brigadiers, rank pay was added to the basic
    pay. However, due to some mischief, an amount equal to the rank pay
    was deducted from the basic pay. This continued over a span of 10
    years, affecting nearly 50000 officers. While a high court has told
    the government to 'pay-up' the amount thus deducted, the latter has
    taken the case to the Supreme Court and that is where the matter rests
    now. For the purpose of pension, defence
    personnel, remained equated with civilian employees, consequently
    condition of 33 years service to earn full pension stayed, placing the
    former at a great disadvantage. First you retire 90 to 95 percent
    after 17/25/28 years of service and then tell them, sorry you cannot
    get full pension, as you did not complete 33 years of service. This is
    Indian Government's version of
    natural justice and fair play.
    The Fifth Pay Commission took away the running pay band and further
    lowered the status of service officers. It too did not accept the 'X'
    factor. It sought views from the IDSA, an organ of the MoD, which made
    a host of outlandish and irrelevant recommendations. Such as reduction
    of strength of the army by 35 percent, disbandment of RR units etc,
    and that at a time when army's commitments in the NE and J and K were
    on the increase. Further the Service Chiefs were excluded from all the
    disadvantages introduced in the pay and allowances of all ranks: not
    without a purpose.
    Successive pay commissions, aided and abetted by the government, have
    made service in the military so unattractive that besides lingering
    deficiency of nearly 13000 officers, lower standards of intake not
    withstanding, there is near exodus from the service. Between 2001 and
    2004, in all 2000 officers applied to leave the army. These included 2
    lt-gens, 10 maj-gens, 84
    brigadiers, and the rest colonels and below. In all 1472 were allowed
    to leave.
    The situation in the IAF is more distressing. How many from the IAS,
    IPS and other central services have opted to leave! Can there be a
    more convincing inequality between the civil services and service in
    the military and its unattractiveness! There is disenchantment amongst
    the officers and simmering discontent prevalent in the troops. India
    has an unbroken record of military defeats stretching back to two
    thousand years, sans the victory against East Pakistan in 1971. Still
    we are so indifferent to issues of national security! No amount of
    sophistication and state of the art weaponry can compensate for poor
    leadership and demotivated troops in the military.
    The Sixth Pay Commission must look at the service conditions of
    defence personnel and the imperatives of the applicability of 'X'
    factor in their case. 'Running pay band' must be reintroduced,
    truncated careers should be compensated by grant of 75 percent of last
    pay drawn as pension. NDA and IMA cadets should get pay and not
    stipend and their stay with these academies should be counted towards
    service, as is the practice everywhere. The Pay Commission needs to
    study the practices followed in UK, USA and other democracies in
    respect of pay and allowances of their defence forces and relate these
    to India's armed forces. Within various services, equation should be
    sought in the sum total of pay including allowances drawn in full
    length of service and to that should be added the 'X' factor in the
    case of the military. Government must refrain from taking advantage of
    the good discipline of defence personnel. It must act in good faith
    and exercise fair play.

    Finally, what one gets in the military are peanuts. Peanuts will
    attract monkeys and the only time they won a battle was against Lanka
    ( Sri Lanka ) under Sri Ram.

  3. Anonymous10:48 PM

    good analysis. its high time the government realises its folly. you cannot close your eyes to a situation and hope like hell that it passes away. some day or the other it will explode like a time bomb. it can be the announcement day of the sixth pay commission also. a soldier is at the mercy of his superiors. he is not allowed to raise his voice or go on strike like the babus do. he plays on his life so that you sleep in peace in your cosy bed. try spending one day in siachen glacier and you will realise how bad life can be. its very easy and simple to talk big on the streets. the day you experience bullets flying around you, you will realise what being a slodier means. i hope the sixth pay commission peeps into the heart of the soldier rather than stare at his pocket. jai hind

  4. Anonymous2:48 PM

    An increase in pay is welcome. But more than that the system of rise in the pay and promotion needs rectification. Even those employee who work less gets the same pay and promotion. One who works hard should be should be properly rewarded.

  5. Anonymous11:58 AM

    only 190 candidates joining the NDA against 300 plus is a wake up call for Govt. We can ofload R&D,railways, Road tpt,Air tpt,Construction,medical, teaching,Tax collection etc. to private agencies/multinationals but not the defence of the country.There is no choice but to get quality recruits from with in the country.It appears dificult to do the same with present pay structure.

  6. Anonymous5:08 PM

    no the defence of the country can also be outsourced to BLACKWATER CORPORATION OF USA, who are fighting the war in Iraq. They hire highly motivated men, who may be retired people or thugs or petty thives, but will kill anybody if the money is right.

  7. Anonymous8:31 PM

    Govt should give the responsibility to decide their pay structure to defence forces and analyse it.believe me they will never ask for abnormally higher pay and allowances.Govt must dare atleast once and make that practical public to decide their honesty.

    Govt should give the responsibility to decide their pay structure to defence forces and analyse it.believe me they will never ask for abnormally higher pay and allowances.Govt must dare atleast once and make that practical public to decide their honesty.