About the Book
The Government of India constitutes, as a matter of convention, a pay commission after almost every 10 years to review and make recommendations on the wage structure of Central Government civilian and armed forces employees and pensioners. A pay commission, depending on the terms of reference, examines various aspects-such as pay and allowances, retirement and death benefits, conditions of service, promotion policy and such other related matters of the wage structure of employees and submits its recommendations to the Government. The Government, in turn, takes the final decision as to the implementation of the recommendations, which may be full or partial or amended or modified. The chairman and members of the pay commission are nominated by the Government.
A pay commission is not a constitutional body and therefore the Central Government has a lot of leeway about which part of the report to adopt and in what timeframe. Since India’s Independence, 7 pay commissions have been set up, from time to time, to review and recommend wage structure for Central Government employees. Usually a pay commission is given 18 months time to submit its report.
A pay commission, before recommending the pay structure, analyzes voluminous data relating, inter alia, to the general economic conditions in the country, financial resources of the government, strength of the work force, and pay structure in public sector and private sector undertakings. Clearly, review and determination of the pay structure of Central Government employees and pensioners is a stupendous and complicated task. Reports of pay commissions provide glimpses of the events, challenges and perceptions of labour leaders and policy makers during the post-Independence period.
The present work provides highlights and summary of recommendations of each of the 7 pay commissions which have reported so far. The work is divided into two parts. Part I deals with the Reports of First to Sixth Pay Commission. Part II is exclusively devoted to the Report of the Seventh Central Pay Commission which was submitted to the Government on November 19, 2015.
M.M. Sury received his B.A. (Hons.), M.A., and Ph.D. degrees in economics from the University of Delhi. He taught economics in the same university for 42 years. Specialising in fiscal economics, he has published extensively on Indian fiscal system in recognised national and international journals, including Small Industry Bulletin for Asia and the Pacific (United Nations, Bangkok), Bulletin for International Fiscal Documentation (International Fiscal Association, Amsterdam), Asian-Pacific Tax and Investment Bulletin (Singapore), Journal of the Indian School of Political Economy (Pune), Indian Economic Journal (Bombay), and Margin (New Delhi). He was a Visiting Fellow at the International Bureau of Fiscal Documentation, Amsterdam (May 1989), a Fellow at the Indian Institute of Advanced Study, Shimla (1991-92) and a Visiting Fellow in the Department of Law and Management, University of Mauritius, Mauritius (September-October, 2000). He was Economic Adviser, First Delhi State Finance Commission (1996-97).
Contents
Part I : Central Pay Commissions: First to Sixth
1.First Central Pay Commission
1.1 First Pay Commission at a Glance
1.1.1 Terms of Reference and Scope
1.1.2 Scheme of the Report
1.1.3 Procedure Adopted
1.2 Summary of the Recommendations of the First Central Pay Commission
1.2.1 Classification of the Services
1.2.2 Pay Structure
1.2.3 Pay Rates and Pay Scales
1.2.4 Allowances and Other Benefits
1.2.5 Hours of Work: Overtime and Holidays
1.2.5 Differentiation on Ground of Race and Sex
1.2.6 Conditions of Service
1.2.7 Leave Rules
1.2.8 Retirement Benefits
1.2.9 Conciliation Machinery
1.2.10 Labour Classification
2.Second Central Pay Commission
2.1 Second Pay Commission at a Glance
2.1.1 Terms of Reference
2.1.2 Procedure Adopted
2.2 Summary of the Recommendations of the Second Central Pay Commission
2.2.1 Principles of Pay and Conditions of Service
2.2.2 Economic Conditions and Developmental Planning
2.2.3 Disparities between Central Emoluments and those under State Governments, Local Bodies etc.
2.2.4 Minimum Remuneration
2.2.5 Highest Salaries
2.2.6 Dearness Allowance
2.2.7 Pay Scales
2.2.8 Headquarters Organisation of the Government of India
2.2.9 Office Staffs Outside the Secretariat
2.2.10 Class II Services and Posts
2.2.11 Scientific Staff
2.2.12 Medical and Public Health Staff
2.2.13 Class IV Staff
2.2.14 Workshop Staff
2.2.15 Railways
2.2.16 Posts and Telegraphs Department
2.2.17 Union Territories
2.2.18 Special Pay
2.2.19 Fixation of Pay in New Scales
2.2.20 Allowances
2.2.21 Hours of Work, Weekly off, Public Holidays, Overtime Allowance, Casual Leave and Special Casual Leave
2.2.22 Age of Superannuation
2.2.23 Retirement Benefits
2.2.24 Leave Travel Concessions
3.Third Central Pay Commission
3.1 Third Pay Commission at a Glance
3.1.1 Terms of Reference
3.2 Summary of the Recommendations of the Third Central Pay Commission
3.2.1 Principles of Pay Determination
3.2.2 Minimum Remuneration
3.2.3 Starting Salary of Class I Services and Maximum Salary under the Government
3.2.4 General Recommendations on Pay Structure
3.2.5 Promotion Policies
3.2.6 Lateral Entry
3.2.7 Selection Grades
3.2.8 Headquarters Organisation of the Government of India
3.2.9 Office Staff in Non-secretariat Organisations
3.2.10 All India Services
3.2.11 Central Services Class I
3.2.12 Class II Services and Posts
3.2.13 Dearness Allowance
3.2.14 City Compensatory Allowance (CCA)
3.2.15 House Rent Allowance
3.2.16 Leave Travel Concessions
3.2.17 Death-cum-Retirement Benefits
4.Fourth Central Pay Commission
4.1 Fourth Pay Commission at a Glance
4.1.1 Terms of Reference
4.2 Summary of the Recommendations of the Fourth Central Pay Commission
4.2.1 Principles of Pay Determination
4.2.2 Rationalization of Pay Scales
4.2.3 House Building Advance
4.2.4 House Rent Allowance (HRA)
4.2.5 Children’s Education Allowance
4.2.6 Medical Facilities
4.2.7 City Compensatory Allowance (CCA)
4.2.8 Travelling Allowance (TA) and Dearness Allowance (DA)
4.2.9 Retirement Age
4.2.10 Provident Fund and Insurance
4.2.11 Stagnation Relief
4.2.12 Women Welfare
4.2.13 Armed Forces
4.2.14 Miscellaneous Recommendations
5. Fifth Central Pay Commission
5.1 Fifth Pay Commission at a Glance
5.1.1 Terms of Reference
5.1.2 Interim Reports
5.1.3 Financial Impact of Fifth Pay Commission Recommendations
5.2 Summary of the Recommendations of the Fifth Central Pay Commission
5.2.1 General Principles for Pay Determination
5.2.2 Pay Scales of Civilian Employees
5.2.3 Pay Scales for Officers and Employees of Supreme Court of India and High Court of Delhi
5.2.4 Allowances and Facilities for Civilian Employees
5.2.5 Pensions and other Retirement Benefits for Civilian Employees
5.2.6 Armed Forces Personnel
5.2.7 Other Matters
6. Sixth Central Pay Commission
6.1 Sixth Pay Commission at a Glance
6.1.1 Terms of Reference
6.2 Summary of the Recommendations of the Sixth Central Pay Commission
6.2.1 Date of Implementation
6.2.2 Running Pay Bands
6.2.3 Minimum and Maximum Salary
6.2.4 Grade Pay and Promotions in Running Pay Bands
6.2.5 Annual Increment
6.2.6 Variable Increments
6.2.7 Pay Scales of Defence Forces
6.2.8 Performance Related Incentive Scheme (PRIS)
6.2.9 Dearness Allowance
6.2.10 Other Allowances
6.2.11 Medical Facilities
6.2.12 Pension
6.2.13 Other Recommendations
6.2.14 Financial Implications
Part II: Seventh Central Pay Commission
