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Mainstream, Vol 63 No 34, August 23, 2025

Revisiting the Central Pay Commission: Aspirations, Anxieties, and Accountability | Amarbahadur Yadav, Nitish

Saturday 23 August 2025

Keywords: Central Pay Commission, Eighth Pay Cmmission, Economic Growth, Salary Increase, Allowance

India has one of the largest central government workforces in the world, which includes the Indian Armed Forces, the Indian Railways, and India Post, among other ministries and departments. India spends about 2 percent of its GDP annually on the emoluments (salaries, allowances, and pensions) of these employees. The Central Pay Commission is responsible for reviewing salary hikes for central government employees. First established in 1946, seven Pay Commissions have been rolled out. And every ten years, the recommendations of the new Pay Commission take effect. The Seventh and latest Pay Commission came into effect in January 2016, with the recommendations of the next one proposed to be rolled out in January 2026.

The primary objective of the Pay Commission is not restricted to merely recommending and revising the pay scales of government employees