Answer:

The Central Pay Commission (CPC) (and also State Pay Commissions) is set up on a periodic basis by the Government to review and recommend changes in the salary and pension structures of its employees in various civil and military divisions. Since Independence, seven such CPCs have been constituted, with the latest i.e. Seventh Pay Commission’s recommendations being accepted in 2016.

An expectation for a just reward is naturally ingrained in every human action. The reward should be commensurate to the efforts in order to incentivize the risk takers, innovators, high performers and discipline the laggards. Thus, review of performance should be a key factor in revising compensation.

Under the present system, the CPC recommends across-the-board pay hike, which has little scope to account in the performance.