Will the old record be broken this time? Know which pay commission filled the pockets of employees the most

There is enthusiasm among lakhs of central employees and pensioners across the country after the Union Cabinet approved the formation of the 8th Pay Commission and the Terms of Reference. The government has asked the commission to submit its recommendations within 18 months. But meanwhile, there is only one question in everyone’s mind – will the 8th Pay Commission give a bigger gift than the last time? Let us turn the pages of history and see which commission has enriched the employees the most so far.

Journey of salary increase since independence

Since independence, seven pay commissions have been constituted, and each time there have been major changes in the salaries of employees. In 1947, the first Pay Commission started with a minimum wage of just Rs 55. After this, from time to time the commissions gave new direction to the pay structure. The Second Pay Commission of 1959 gave an increase of 45%, while the Third Pay Commission of 1973 increased the minimum wage from Rs 80 to Rs 196.

Fourth and Fifth Commission: Huge jump in salary

If we talk about percentage increase in salaries, the fourth and fifth pay commissions proved to be game-changers. The Fourth Pay Commission directly increased the minimum wage from Rs 196 to Rs 750. At the same time, the Fifth Pay Commission increased it from Rs 750 to Rs 2550. These commissions had made revolutionary changes in the government pay structure.

Sixth and Seventh Commission: The era of ‘fitment factor’

In the year 2006, the Sixth Pay Commission introduced the concept of ‘fitment factor’ for the first time, due to which the minimum wage became Rs 7000. After this, in 2016, the Seventh Pay Commission implemented the highest fitment factor of 2.57 in history, after which the minimum wage increased from Rs 7000 to Rs 18,000.

Who is the winner? Which commission gave the most benefit?

If we look at the percentage increase, the Fourth Pay Commission is at the top. It had increased the minimum wage by a whopping 282%, which is the biggest record till date. Whereas, if we compare the ‘fitment factor’, then the Seventh Pay Commission was at the forefront, which made a big and systematic improvement in the salary of the employees with a factor of 2.57. Now all eyes are on the 8th Pay Commission to see whether it will be able to break all the old records of fitment factor or percentage increase this time?