Pay commissions have been regularly set up by the Government of India since its independence. The salaries of the various Government officials are evaluated by this commission and it also ensures their proper functioning.
The sixth pay commission was set up in July 2006 under the chairmanship of Justice B.N. Srikrishna. It dealt with all the problems of the payment of the government employees. There was a demand for a salary raise by the employees so they could cope with the pressures of inflation and globalization. These demands were looked into by this commission as soon as possible because the employees had threatened to go on a strike if their demands were not met. A 20,000 crore raise for 5.5 million employees was predicted in order to calm the situation.
The government sector employees were generally paid a lot less than private sector employees which lowered their morale and made them lose interest in their jobs. The raise in salaries gave the employees a boost to work again and the commission also gave other recommendations to the various sectors on how they could improve their working and in turn, their prospects. The officials who were deprived of a part of their salary in the previous year were reimbursed under this commission.
The main objective of the sixth pay commission was to remove the uncertainty in the pay scales of the government officials and they also focused on introduction of pay bands as a scheme to reduce expenditure.