Central Pay Commission

About Central Pay Commission

• Pay commission is a body set up by the Central government that reviews and recommends changes to the salary structure of the employees. This panel also reviews the bonuses, allowances and other benefits of the employees.
• It recommends changes for central government employees and pensioners as well as the defence forces.
• History: Pay commissions are usually constituted every 10 years and the first pay commission was set up in 1946. Since Independence, a total of seven pay commissions have been formed.
• The latest pay commission was set up in 2014 and its recommendations came into effect in 2016.
• It is not mandatory for the government to accept the recommendations of the pay commission. The government may choose to accept or reject the recommendations.

The Department of Expenditure under the Ministry of Finance is responsible for the implementation of the recommendations of the Central Pay Commission.

Q1: What is Dearness Allowance?

It is a cost of living adjustment that the Government pays to public sector employees and pensioners.

Source: 8th Pay Commission latest update: Govt gets a proposal on formation of next CPC; what central govt employees must know

‹ ›