1.Eighth Central Pay Commission (Pay Commission)
What & Where
Pay Commission – ad-hoc expert body reviewing pay, allowances & pension of Central Government civilian staff and defence personnel.
Constituted by Department of Expenditure, Ministry of Finance; recommendations submitted to Union Cabinet & Parliament.
8th Pay Commission now approved to cover ~50 lakh employees & 65 lakh pensioners across India.
Quick Facts for MCQs
History & Timeline
- 1st Commission (1946) framed initial post-colonial pay architecture.
- Gap between 7th (2014) and 8th (2024) keeps near-decadal cycle intact.
- Successive reports laid groundwork for DA/DR indexation formulae.
Mandate & Functions
- Review salary, allowances, pension; propose rational, inflation-indexed structure.
- Recommend Dearness Allowance & Dearness Relief formulas to neutralise CPI swings.
- Suggest administrative pay reforms ensuring fiscal sustainability.
Fiscal Angle
- 7th Commission raised outgo by ~₹1 lakh crore in first year.
- 8th recommendations likely influence Union Budget, FRBM targets & state pay revisions.
Governance Impact
- Unified, transparent pay matrix aids morale, talent retention and inter-service parity.
- Commission’s consultative process offers platform for staff associations’ inputs.
Key Data Points
| Feature | Data-Point |
|---|---|
| Latest commission number | 8th |
| Approving authority | Union Cabinet chaired by PM |
| Establishing ministry | Dept. of Expenditure, MoF |
| Employees affected | ≈ 50 lakh |
| Pensioners affected | ≈ 65 lakh |
| 1st Pay Commission year | 1946 |
| 1st Commission head | Srinivasa Varadachariar |
| 7th Commission set up | 2014 |
| 7th Commission effective date | 1 Jan 2016 |
| 7th Fitment factor | 2.57 |
| 7th Minimum basic pay | ₹18,000 |
| 7th Maximum basic pay | ₹2,50,000 |
| 7th FY16-17 fiscal impact | ≈ ₹1 lakh crore |
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