Check the Complete Historical Timeline of Pay Commission in India

Since India gained its independence in 1947, the government has set up a number of Pay Commissions to analyse the salaries of its employees and recommend the structures. All commissions have been critical in influencing the compensation structure, according to the changing economic environment and the administrative requirements.

The government has just recently passed a resolution by PM Narendra Modi to constitute the 8th Pay Commission to review the salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. This is a summary of the last seven Pay Commissions.

Historical Timeline of Pay Commission in India

Brief overview of the Pay Commission in India

1st Pay Commission (May 1946 – May 1947)

• Concentrated on the pay structure adaptation in post-independent India.

• The idea of a living wage was introduced.

• Min. Salary: 55/month; Max Salary: 2,000/month.

• Beneficiaries: Circa 1.5 million employees.

2nd Pay Commission (August 1957 -August 1959)

• To equalise the economy and living expenses.

• Recommended minimum wage of 80R/month.

• Brought a socialistic pattern of society.

• Beneficiaries: 2.5 million employees, approximately.

3rd Pay Commission (April 1970 -March 1973).

• Offered a minimum wage of 185 in a month.

• Concentrated on wage equality between the government and the corporations.

• Cutting salary gaps.

• Beneficiaries: An estimate of 3 million employees.

4th Pay Commission (September 1983 -December 1986)

• Proposed a minimum wage of 750/month.

• Centred on the elimination of pay differences at different ranks.

• Implemented a performance pay system.

• Beneficiaries: More than 3.5 million employees.

5th Pay Commission (April 1994 -January 1997)

• Offered a minimum salary of 2550/month.

• Recommended to have fewer pay scales.

• Specialised in the modernisation of government offices.

• Beneficiaries: 4 million employees or so.

6th Pay Commission (October 2006 -March 2008)

• Pay Bands and Grade Pay were introduced.

• Minimum Wage: 7000 INR per month / 80000 INR per month;

• Concentrated on performance-based rewards.

• Beneficiaries: almost 6 million employees.

7th Pay Commission (February 2014- November 2016)

• Raised minimum pay to 18,000/ month and top pay to 250,000/month.

• Introduced a new pay matrix in place of the grade pay system.

• Dedicated to work-life and allowances.

• Beneficiaries: More than 10 million (pensioners in addition)

8th Pay Commission (Announced on January 16, 2025)

The Union Government approved the establishment of the Eighth Pay Commission on January 16, 2025, as announced by Union Minister Ashwini Vaishnaw. Significant salary adjustments are expected to be recommended to reflect current economic realities, though specific recommendations have not yet been released.

Conclusion

Since independence, the Pay Commission have played a very important role in ensuring fair and progressive compensation for the government employees in India. 

Each pay commission has adopted such a pay structure to match the current economic condition, inflation and administrative demands, which helps in balancing the employee welfare and fiscal discipline.

The upcoming 8th Pay Commission, announced in 2025, is expected to further align salaries with contemporary economic realities, cost of living, and digital-era work dynamics, reinforcing the government’s commitment to equitable growth and administrative efficiency.