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Pay commissions called for reforms in services, but little happened

21 Jan 2025
2 min

Central Pay Commissions and Their Impact

The Eighth Central Pay Commission has been approved, continuing the tradition of examining government employees' pay relative to the private sector, simplifying pay grades, and linking pay revisions with performance appraisals. Despite these efforts, comprehensive civil service reforms remain limited, with only the Sixth Pay Commission achieving modest wage growth prudence.

Roles of the Pay Commission

  • Recommendations for Pay Revisions: Generally accepted by the government, intended to enhance the living standards of government employees. 
  • Suggestions for Improving Efficiency: Often overlooked in favor of immediate pay adjustments. 

Prime Minister Narendra  emphasized the role of the Pay Commission in improving quality of life and boosting consumption for government employees.

Historical Perspectives from Past Commissions

  • Third Pay Commission: Highlighted fundamental differences between government and private sector motivations and policies. 
  • Seventh Pay Commission: Stressed the non-contractual nature of government service, noting its societal status and the need to maintain attractive salary structures. 
  • Sixth Pay Commission: Advocated for a system focused on delivery and end results. 
  • Seventh Pay Commission: Suggested Performance Related Pay (PRP) for all Central Government employees, replacing existing bonus schemes. 

Lateral Entry and Service Differences

  • Third Pay Commission (1973): Recommended performance-based promotions, irrespective of service class. 
  • Fourth Pay Commission (1986): Proposed empaneling top officers without regard to service for higher posts. 

Despite these recommendations, significant implementation has been lacking, with limited secretary-level posts open to central services outside the Department of Posts and railways.

Fifth Pay Commission's Observations

  •  Suggested a 30% reduction in employees over 10 years, with Suresh Tendulkar dissenting on the feasibility of achieving such cuts. 
  •  Advocated for employee reduction before salary revisions—a strategy not realized. 

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