Sixth Central Pay Commission

The Government of India, after taking into account the changing scenario in terms of structure of emoluments and service conditions of Government employees in several respects since the implementation of Fifth Central Pay Commission’s report in 1997, have appointed the Sixth Central Pay Commission on October 5, 2006 under the Chairmanship of Mr. Justice B.N. Srikrishna with Prof. Ravindra Dholakia and Mr. J.S. Mathur as its Members and Smt. Sushama Nath as Member-Secretary.

The Pay Commission has been given the tasks of:

1. Examining the structure of pay, allowances and other facilities/benefits whether in cash or in kind to the government employees,

2. To transform the Central Government Organisations into modern, professional and citizen-friendly entities that are dedicated to the service of the people.

3. To work out a comprehensive pay package for the government employees that is suitable linked to promoting efficiency, productivity and economy through rationalization of structures, organizations, systems and processes within the government, with a view leveraging economy, accountability, responsibility, transparency, assimilation of technology and discipline.

4. To harmonize the functioning of the Central Government organizations with the demands of the emerging global economic scenario. This would also take in account, among other relevant factors, the totality of benefits available to the employees, need of rationalization and simplification, thereof, the prevailing pay structure and retirement benefits available under the central PSUs, the economic conditions in the country, the need to observe fiscal prudence in the management of the economy, the resources of the central government and the demands thereon on account of economic and social development, defence, national security and the global economic scenario.

5. To examine the principles which should govern the structure of pension, death-cum-retirement gratuity, family pension and other terminal or recurring benefits having financial implications to the present and former Central Government employees appointed before January 1, 2004.

6. To make recommendations with respect to the general principles, financial parameters and conditions which should govern payment of bonus and the desirability and feasibility of introducing Productivity Linked Incentive Scheme in place of the existing ad hoc bonus scheme in various Departments and to recommend specific formulae for determining the productivity index and other related parameters.

7. To examine desirability and the need to sanction any interim relief till the time the recommendations of the Commission are made and accepted by the Government.

The Commission will make its recommendations within 18 months of the date of its constitution i.e. before April 4, 2008.

The Commission is holding meetings and hearings with the officers, unions and associations.

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