Pay commission

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A Pay Commission is a panel comprised of members of the Union Cabinet of India for hiking the salaries of government employees. The first pay commission was constituted in May 1946, and had submitted its report in a year. The second panel had been set up in August 1957 and had given its report exactly after two years, with a financial impact was Rs.396 million. The third pay commission set up in April 1970 gave its report in March 1973, and created proposals that cost the government Rs.1.44 billion. The fourth was constituted in June 1983, its report was given in three phases within four years and the financial burden to the government was Rs.12.82 billion.^[1] The Fifth Pay Commission was set up in 1994 and implemented in 1997 at a cost of Rs. 17,000 crore. In July 2006, the Cabinet approved setting up of the sixth pay commission which. The cost of hikes in salaries is anticipated to be about Rs. 20,000 crore for a total of 5.5 million government employees as per the 6th Pay Commission. The employees had threatened to go on a nationwide strike if the government failed to hike their salaries. Reasons for the hikes include rising inflation due to the forces of globalization and liberalization of the Indian economy.^[2] The Class 1 officers in India are grossly underpaid with an IAS officer after 25 years of work experience earning just Rs.550000 as his take home pay.