7th Pay Commission: Know the System Behind the Pay Commission of India

Millions of employees across the nation have been looking to the government for relief as high inflation has reduced their purchasing power year after year. The topic of predicting the year of the upcoming pay commission and when employees' salaries would increase frequently comes up in office conversations.

Most people believe that DAs are insufficient to combat inflation. According to a business website that cited a government source, the eighth pay commission's suggestion won't be put into practice until 2026.

What is the Pay Commission?

The Central Government set up the Pay Commission, a committee that examines and suggests adjustments to the Employee Salary Structure. Additionally, the incentives, allowances, and other employee benefits are reviewed by this panel. It makes adjustments for both the armed forces and central government personnel and pensions.

It is crucial to modify government employee salaries as inflation reduces the purchasing power of money. Millions of individuals are impacted by the pay commission's judgments, which are in charge of revising the salaries of all central government employees and pensioners.

The pay commission considers a number of issues while evaluating the pay structure, including the state of the economy, inflation, and the government's financial situation. The government is not required to follow the pay commission's recommendations. The recommendations may be accepted or rejected by the government.

The first pay commission was established in 1946, and they are typically formed every ten years. There has been a total of seven pay commissions established since Independence. Its recommendations took effect in 2016. The most recent pay commission was established in 2014. The salaries of current central government employees and pensioners are determined by the 7th pay commission's recommendations.

The government has adopted several significant recommendations made by the 7th Pay Commission, including the introduction of a new pay matrix and the maintenance of the 3% yearly increment rate.

So how do employees get protected from inflation if the pay commission's review of the salary structure occurs after a considerable period of time? The government revaluates Dearness Allowance on a regular basis to make up for the real value degradation of employees' salaries owing to inflation (DA). The Dearness Allowance modifications, which vary from person to employee, are likewise dependent on the prior pay commission.