Pay Commission
Headquartered in Delhi (India), the commission is given 18 months from date of its constitution to make its recommendations.[1] On 16th January 2025, Union Minister Ashwini Vaishnaw made the announcement that 8th Pay Commission formation has been approved.It is for the first time that a Pay Commission has been asked to enquire into the, structure of emoluments of both the civilian employees, of the Government and the Armed Forces.Commission also visited forward posts at heights of 13000 feet, air bases, ships, submarines, ordnance depots, hospitals, etc.The CPC was headed by a retired Supreme Court justice, Shri Raghubar Dayal.Report of the Third Central Pay Commission, 1973.Vol.III.This nexus becomes all the more relevant and desirable when we recall that recruitment to our Armed Forces is on a voluntary basis, which means that persons have to be attracted from civilian life.The quality of recruitment to the Armed Forces will be satisfactory only if Service pays are comparable to levels of remuneration in civilian employment.In Sep 1970 pension was reduced to Rs 587/- to compensate for grant of Death Cum Retirement Gratuity (DCR).On similar lines, to compensate for DCR in 1970, officer's pension was reduced by appx 8% and PBOR 11%.Mrs Indra Gandhi for the first time introduced Liberalised Family Pension for war widows and their children.24.2.72, decided to grant Liberalized Pensionary Awards equivalent to the basic pay +increments +rank pay +good service pay+ dearness pay + home saving element to the nominated heir of PBORs of Armed Forces personnel as well as NCs(E), (including APS and DSC personnel), who were killed in action or disabled in the operations against any neighboring country and as well as in following actions: 1.1947–48 Kashmir Operations, international wars of 1962, 1965 (including Kutch and Kargil Ops.These benefits were granted wef 1-2-1972 to the nominated heirs / NoKs of all personnel who were killed in above actions and operations from 1947 to 1948 onwards.Family Pension at the rate equal to 60% of reckonable emoluments till his/her disqualification i.e. attaining the age of 25 years.The crippled child will continue to receive this award for life at the rate equivalent to 60% of Liberalised Family pension.The relief at these rates should be given as and when there is a 16 points rise in the 12-monthly average of the All India Working Class Consumer Price Index (1960=100).” On the other hand, service pensions were revamped.The main highlight of the 3rd CPC was that for the first time weightage was given to Armed Forces for early retirement and DR granted.Indian National Congress (I) Government, headed by Rajiv Gandhi, in the wake of the 4th CPC to implemented concept of 'Rank Pay' for armed forces officer.After protracted legal struggle high court, despite many appeals, in a landmark decision declares the 'rank pay' concept illegal.[10] The notification for setting up the Fifth CPC was issued on 9 April 1994, but started functioning only on 2 May 1994, with the assumption of charge by the Member Secretary.It also recommended to reduce the number of pay scale from 51 to 34 and to not recruit to about 3,50,000 vacant position in the government.The 5 CPC, however, for the first time was asked to examine the terms and conditions of the Armed Forces, and make suggestions for what is "considered desirable and feasible".[13]: p 139, para 2.4.4 These recommendations of the Pay Commission were, however, mostly ignored by the Janata Dal (United Front), and BJP Government of Atal Bihari Vajpayee that followed.[14] On 29 June 2016, Government accepted the recommendation of 7th Pay Commission Report with meager increase in salary of 14% after six months of intense evaluation and successive discussion.The employee can borrow up to 34 months of the basic pay to a maximum of Rs 25 lakh, or cost of the house/flat, or the amount according to repaying capacity, whichever is the least.If both spouses are central government employees, they can take Housing Building Advance (HBA) either jointly, or separately.The full report is available on the website of Ministry of Finance, Government of India[19] The Union Cabinet approves 7th Pay panel recommendations on 29 June 2016.For instance, Wing Commanders of the Air Force, commander of the navy, and Lt colonel of the army, with 13 years of service, according to MOD implementation tables, will be subordinate in 'level', rank, pay scale, and organizational hierarchy than police officers, auditors and accountants, with equal or even lesser service.In March 2016, eighteen former heads of the Armed forces, including General Ved Prakash Malik (former Chief of Army Staff) and Admiral Arun Prakash (former Chief of naval staff) sent a joint letter to Narendra Modi, the Prime Minister, conveying their distress and alarm on the flawed approach and contentious recommendations of the 7CPC.On 25 July 2016, without addressing or taking into account the key concerns of the armed forces, the Government issued instructions implementing 7CPC's "general recommendations on pay without any material alteration" including separate "Pay Matrices" (for civilians) and the armed forces.