Thursday, September 18, 2014




Tuesday, September 16, 2014

History of Earlier Pay Commissions in India

The concept of constitution of Pay Commissions for revision of pay scales of Central Government employees is peculiar to India and no other country in the world is following this pattern of specified periodical revisions as an established mode of such revisions.

The Government of India constitutes, as a matter of convention, Pay Commissions every ten years to review and make recommendations on the wage structure of Central Government employees including Defence personnel and Railway employees and the Pensioners. The Pay Commission, depending on the terms of reference, shall examine various aspects such as pay and allowances, retirement and death benefits, conditions of service, promotion policy and such other related matters and submits its recommendationsto the Government, who will take the final decision as to its implementation, which may be full or partial or amended of modified.  The Chairman and Members of the Pay Commission shall be nominated by the Government. The so far followed practice for constitution of the Pay Commission is at periodical intervals of 10 years as is seen from the constitution of such Commissions in the past. It is not mandatory for the Government to constitute the Pay Commission as is seen from the fact that inspite of the Employees’ demanding for constitution of Pay Commission during the year 2003, the Vajpayee government has turned down their demand.

Prior to the constitution of the First Pay Commission in 1946, the 1934 pay scales were continued.

First Pay Commission
The First Pay Commission was constituted in May 1946 under the Chairmanship of Sri Srinivasa Varadachariar. Taking inspiration from the Islington Commission Report of 1912 under the Chairmanship of Lord Islington, the concept of living wages meaning that in no case an employee’s wage be less than the living wage, was taken into consideration in formulating the recommendations of the First Pay Commission. The Commission has fixed Rs.55, of which Basic Pay was Rs.30 and DA Rs.25 as the minimum wage. Therecommendations were accepted by the Government.

Second Pay Commission
The Second Pay Commission was set up in August 1957 under the Chairmanship of Justice Jagannath Das and the Commission took two years to finalize the report. One of therecommendations of the Commission was that the pay structure and working environment of the government employees should be crafted in such a way as to ensure efficient functioning of the system by recruiting persons with a minimum qualification, which was earlier not followed. The Commission recommended the minimum wage at Rs.80 (Basic Pay Rs.70 and DA Rs.10) per month and reduced the multiple numbers of pay scales.

Third Pay Commission
The Third Pay Commission was set up in April 1970 under the Chairmanship of Justice Raghuvir Dayal. It went beyond the idea of minimum subsistence and added three concepts of inclusiveness, comprehensibility and adequacy for pay structure to be sound in nature as to be attractive to the employees, which, the Commission felt that it would improve the efficiency of functioning of the Government machinery. It recommended theminimum wage at Rs.185 per month and the Government raised it to Rs.196. Pay fixation formula was made more liberal. The Commission gave its report in March 1973.

Fourth Pay Commission
The Fourth Pay Commission was constituted in March 1983 under the Chairmanship of Sri P.N.Singhal. It recommended for creating permanent machinery as part of the administration to undertake periodical review of pay and allowances of the employees. However, it was never implemented by the Government. It recommended for minimum wage of Rs.750. It took four years and submitted the report in three phases. The report was implemented with effect from 01.01.1986.

Fifth Pay Commission
The Fifth Pay Commission was set up in 1994 under the Chairmanship of Justice Ratnavel Pandian. The Commission recommended for fixing the minimum wage at Rs.2550 per month, to further reduce the number of pay scales from 51 to 34 and to slash the government workforce by about 30% with grant of salary hikes to the retained employees. It took 4 years for the Commission to submit its report. During this period, the Government of India was in take-off mode with the concept of LPG (Liberalisation, Privatisation and Globalisation) in its economic reforms, for which it has to look to theWorld Bank and IMF and thus the World Bank has opened its mouth with criticism on the after effects of the Pay Commission recommendations on the Indian economy.

Sixth Pay Commission
Sixth Pay Commission was set up in July 2006 under the Chairmanship of Justice B.N.Srikrishna with a time frame of 18 months. While formulating pay scales with upward revision and fixing the minimum salary at entry level at Rs.6660 (Basic Pay Rs.4860 and Grade Pay Rs.1800) and maximum at Rs.80000 at Secretary level, the Commission mainly focussed on removing ambiguity in respect of the existing pay scales and, introducing the idea of ‘Pay Bands’, while reducing the number of pay scales. It recommended for removal of Group – D cadre.

Seventh Pay Commission
The Government of India constituted Seventh Pay Commission on September 25, 2013 and the recommendations of the Commission are likely to be implemented with effect from 1st January 2016.While hailing the decision of the Government, the Employees’ Unions have demanded for implementation of the Commission’s recommendations to take effect from 1st January 2011 in the same pattern as with the conventional periodical wagerevisions for every 5 years in Public Sector Undertakings. The Commission shall study the structure of salaries of different cadres of the 50 lakh Central Government employees and 30 lakh Pensioners and recommend for upward revision of scales and allied service matters.Constitution of the Chairman and Members of the Commission shall be taken up in due course of time.

During the year 2008, the three wings of defence forces have requested the Central Government to rectify the discrepancies in the pay scales of defence personnel. They felt that since the Defence Forces are expected even to sacrifice their lives in their normal duties, there should be some variance in the pay scales of Civilian employees and Defence personnel.  Similarly, they demanded that the proviso of ‘one rank – one salary’ and ‘one rank – one pension’ should be implemented in the defence forces. After passing though different phases, in the year 2009, Prime Minister Manmohan Singh informed the Defence department that a special Pay Commission would be constituted for Defence Personnel and a strong belief has emerged that a separate Pay Commission will be constituted in the background of the notification for 7th Pay Commission. But, the Chief of Air Staff has expressed in his current letter to the Defence Minister that there is no need for a separate Pay Commission for Defence Forces and that it would be enough if reasonable representation of the Defence cadres is provided in the 7th Pay Commission.

Constitution of the 7th Pay Commission is not devoid of any criticism. Media feels its timing of the constitution of the Pay Commission is so announced that it is a ‘caret and stick’ mode of bait to the Government employees, including Defence personnel and Railway employees in the background of the approaching Lok Sabha elections next year and elections to the State Assemblies of 5 states in November this year.

Industry circles felt that there is every possibility of increased rate of inflation apart from the additional FINANCIALburden on the government with notification of 7th Pay Commission. ASSOCHAM Secretary General Mr. D.S.Rawat dubbed that if the Central Government substantially increases the salaries, the FUNDS at the disposal of the Government would deplete and the pressure of inflation increases. He further stated that by the time therecommendations of the 7th Pay Commission are implemented by January 2016, the FINANCIAL burden in the implementation of the Food Security Act and Employment Guarantee Scheme would also increase. He questioned whether it is necessary for the Government to perennially go on fighting with Fiscal Deficit.  PHD Chamber of Commerce President Mr. Suman Jyothi Khaitan felt that the Government should concentrate on implementation of reforms for improving the financial segment and management of distribution sector and increasing the income status; and further felt that without providing the needed infrastructure and distribution sectors, economy would ultimately lead to severe inflation.

Since India’s Independence, seven pay commissions have been set up on a regular basis 
to review and make recommendations on the work and pay structure of all civil 
and military divisions of the Government of India.
Historically the Central Government has been setting up the Pay Commissions after a 
period of almost ten years. This is more of precedence than a statutory requirement. 
Government is not bound by any law or regulation to set up the Pay Commission after ten years.
The objective of the Pay Commission is to bring parity in the salaries and perks of 
Government Servents with their private sector counterparts and bring a sort of 
compatibility with the trends in the price rise of different COMMODITIES, thus
 encouraging them to lead an honest life.
The roots of practise of setting up Pay Commissions goes back to British Period when 
Royal Commissions were set up for various purposes including Pay Revisions –
 e.g. Aitcheson Commission (1886-87) and Islington Commission (1912-13).
At present India is perhaps the only country where this practice still followed.
 Even Britishers have long discontinued with this system.

Following is a brief summary of all of the Central Pay Commissions in India


      May 1946.
In One Year
Srinivasa Varadachariar

Aug. 1957
Two Years
Jaganath Das
Rs. 396 million.
Apr. 1970
Mar. 1973
Raghubir Dayal
Rs. 1.44 billion
Jun. 1983
Four Years
P N Singhal
Rs.12.82 billion
Jan. 1997
Justice S. Ratnavel Pandian
Rs. 17,000 crore
Jul. 2006
Apr. 2008
Justice B N Srikrishna

Basic Principles of Recommendations of Different Pay Commissions


The commission emphasised on the idea of the living wages and stated that the government which is going to introduce the minimum wages legislation for the workers of the private industry should also follow the same principle for its own employees.

pay structure and the working conditions of the government employee should be crafted in a way so as to ensure efficient functioning of the system by recruiting persons with a minimum qualification

The third pay commission added three very important concepts of inclusiveness, comprehensibility,   and adequacy for pay structure to be sound in nature.The third pay commission went beyond the idea of minimum subsistence that was adopted by the first pay commission. The commission report say that the true test which the government should adopt is to know weather the services are attractive and it retains the people it needs and if these persons are satisfied by that they are getting paid.


Focused on removing ambiguity in respect of various pay scales and mainly focused on reducing number of pay scales and bring the idea of pay bands. It recommended for removal of Group-D cadre

Wednesday, September 10, 2014






Central JCA (NFPE & FNPO) congratulates Five Lakhs Postal& RMS employees including Gramin Dak Sewaks and Casual Contingent Employees for making the first phase of Nationwide agtational programme a Grand Success. Reports are pouring in the CHQ that the mass demonstration and submission of 39 Points Charter of Demands was conducted in almost all divisions and Circles with large participation of employees.

Central JCA requests all Circle/Divisional/Branch secretaries to organize the following next phases of struggle programme also in a grand manner.

II-Phase – 24.09.2014 – Mass Dharna in front of all Postal/RMS Divisional offices

III-Phase – 27th to 31st October 2014 –Relay Dharna in front of all ROs/COs

IV-Phase – 10.12.2014 – Massive Parliament March of 20,000 Postal& RMS employees including Gramin Dak Sewaks and Casual Contingent Employees.

Please start intensive campaign and preparations now onwards. Please ensure that maximum employees from each divisions participate in the Parliament March to be held on 10.12.2014. Please book the Up & Down travel Ticket well in advance.


Phase I – 11.09.2014 – Protest Demonstration at all important places and submission of Memorandum to Cabinet Secretary and all Departmental Heads

NB: copy to the Memorandum, Charter of Demands and explanatory notes on Charter of Demands will be exhibited in the website on 10.09.2014.

Phase – II – 19.09.2014 – Nationwide Day Long Mass Dharna at all important centres.

Phase – III – 25.09.2014 - Mass Dharna at Jantar Mantar, New Delhi

Following are the Demands: -

< !--[if !supportLists]-->1. <!--[endif]-->Merger of DA with pay for all employees w.e.f. 01.01.2014 including Gramin Dak Sewaks and Pensioners.
< !--[if !supportLists]-->2. <!--[endif]-->Grant of Interim Relief to all employees including Gramin Dak Sewaks and Pensioners.
< !--[if !supportLists]-->3. <!--[endif]-->Inclusion of Gramin Dak Sewaks under the purview of 7th Central Pay Commission
< !--[if !supportLists]-->4. <!--[endif]-->Scrap PFRDA Act and grant statutory defined pension to all including those appointed on or after 01.01.2004.
< !--[if !supportLists]-->5. <!--[endif]-->Date of effect of 7th CPC recommendation should be 01.01.2014.
< !--[if !supportLists]-->6. <!--[endif]-->Regularisation and Revision of wages of casual labourers and contract workers.
< !--[if !supportLists]-->7. <!--[endif]-->Removal of 5% condition for compassionate appointment.
< !--[if !supportLists]-->8. <!--[endif]-->Fill up all vacant post and creation of New Post wherever justified.
< !--[if !supportLists]-->9. <!--[endif]-->Stop Downsizing, Outsourcing, Contractorisation and Privatisation of Government function.
< !--[if !supportLists]-->10. <!--[endif]-->Grant productivity Linked Bonus to all without ceiling; Compute bonus as weighted average of PLB for those not covered by PLB agreement.
< !--[if !supportLists]-->11. <!--[endif]-->Revise OTA and NDA and implement arbitration awards.
< !--[if !supportLists]-->12. <!--[endif]-->Settle all pending anomalies of 5th and 6th Pay Commission.

All CHQ office bearers, General Secretaries of State C-O-Cs, Chief Executives of all affiliates and Branch/District/Divisional Secretaries are requested to mobilize maximum employees in the above programme.


< !--[if !supportLists]-->1. As per the decision of the last National Conference of Confederation of Central Government Employees & Workers, a national level two days Trade Union Work Shop will be conducted at Bangalore. C-O-C Karnataka has agreed to host the two days camp. 200 delegates from all over India will attend. Date will be finalized by the National Secretariat Meeting to be held on 26.09.2014. Last year the two days Trade Union Camp was conducted at Mumbai. C-O-C Mumbai made best arrangements for the camps.

< !--[if !supportLists]-->2. To enable the leaders and grass root level workers to have an indepth knowledge and understanding on the demands of the Central Government employees, Confederation CHQ has decided to publish in our website shortly an “EDUCATION SERIES” on various topics. First article will be on “NEED BASED MINIMUM WAGE” by Com. K. K. N. Kutty, National President, Confederation. Second article will be on “DEARNESS ALLOWANCE” by Com. S. K. Vyas, Advisor, Confederation. Third will be on “BONUS” by Com. M. Krishnan, Secretary General, Confederation. Other topics will also be covered in due course. All aspects of the Demands from its origin to the present day will be covered in the articles to be published in website. Leaders and workers may take maximum advantage of it for study and also for effective campaigning.

Tuesday, September 9, 2014


(Department of Personnel and Training)


New Delhi. the 8th September. 2014

G.S.R. 638(E).— In exercise of the powers conferred by sub-secrion (1) read with clause (k) and clause (1) of sub section (2) of Section 59 read with Section 44 and Section 45 of the Lokpal and Lokayuktas Act, 2013 (1 of 2014), the Central Government hereby makes the following rules to amend the Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and the Limits for Exemption of Assets in Filing Returns) Rules. 2014. namely:—

I. (I) These rules may he called the Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and the Limits for Exemption of Assets in Filing Returns) Amendment Rules, 2014.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and the Limits for Exemption of Assets in Filing Returns) Rules, 2014. in rule 3. in the proviso to sub-rule (2), for the words on or before the 15th day of September, 2014’, the words “on or before the 31st day of December, 2014 shall he substituted.

[ F.No. 407/12/2014-AVD-lV(B) Pt.-I ]

Note : The principal rules were published in the Gazette of India, Extraordinary vide notification number G.S.R. 501(E). dated the 14th July. 2014.

Source :

Monday, September 8, 2014

F elicitation function to our young Leaders

Felicitation was done by NFPE members of Guntur Division To Sri Ch Vidya sagar who has elected as Circle secretary and Sri P Apparao secretary p&t credit society on Saturday at Guntur Hoo. .