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8th Pay Commission salary: How minimum and maximum basic salaries have changed since 1947

8th Pay Commission: Can it reduce pay gap between employees?
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8th Pay Commission: Can it reduce pay gap between employees?
India had its first pay commission in 1947. Ever since the minimum and maximum salaries in a pay commission have always garnered attraction. The minimum-to-maximum basic salary ratio, known as compression ratio, was the highest in the 2nd Pay Commission, but it was reduced in later years. However, in the last two pay commissions, the 6th and the 7th, it increased. In the 7th Pay Commission, the compression ratio is 1:13.9 with the minimum basic salary at Rs 18,000 and the maximum at Rs 2,50,000. Employee bodies such as Federation of National Postal Organizations (FNPO) have suggested reducing the ratio to 1:8 in the 8th Pay Commission.
Income gap at 1st Pay Commission (1946-47)
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Income gap at 1st Pay Commission (1946-47)
In the country’s first pay commission, the compression ratio was quite high at 1:36.4, where the minimum basic salary was Rs 55 and the maximum was Rs 2,000. Did it decrease in the 2nd Pay Commission?
Income gap at 2nd Pay Commission (1957)
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Income gap at 2nd Pay Commission (1957)
In the 2nd Pay Commission, the compression ratio increased to 1:37.5, the highest ever. The minimum pay increased to Rs 80, but the maximum pay increased at a larger proportion to Rs 3,000.
Income gap at 3rd Pay Commission (1973)
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Income gap at 3rd Pay Commission (1973)
The third pay commission did some significant work to bridge the gap between the minimum and maximum salaries of central government employees. The ratio was reduced to 1:17.9, where the minimum basic pay was set at Rs 196 and the maximum basic salary was Rs 3,500.
Income gap at 4th Pay Commission (1986)
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Income gap at 4th Pay Commission (1986)
Under the 4th Central Pay Commission, the ratio between the lowest and the highest basic pay was 1:10.7. The minimum basic pay was fixed at Rs 750 per month, while the maximum basic pay was set at Rs 8,000 per month. As a result, the compression ratio between the lowest and the highest basic pay stood at 1:10.7.
Income gap at 5th Pay Commission (1996)
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Income gap at 5th Pay Commission (1996)
Under the 5th Central Pay Commission, the ratio between the lowest and the highest basic pay was 1:10.2. The minimum basic pay was fixed at Rs 2,550 per month, while the maximum basic pay was set at Rs 26,000 per month. As a result, the pay ratio between the lowest and the highest basic pay stood at 1:10.2.
 Income gap at 6th Pay Commission
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Income gap at 6th Pay Commission
Under the 6th Central Pay Commission, the ratio between the lowest and the highest basic pay was 1:11.4. The minimum basic pay was fixed at Rs 7,000 per month, while the maximum basic pay was set at Rs 80,000 per month. As a result, the pay ratio between the lowest and the highest basic pay stood at 1:11.4.
Income gap at 7th Pay Commission
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Income gap at 7th Pay Commission
Under the 7th CPC, the minimum basic pay was fixed at Rs 18,000 per month, while the maximum basic pay was set at Rs 2.50 lakh per month. As a result, the ratio between the lowest and highest basic pay increased to 1:13.9.
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