The panel of 6th Central Pay commission was setup by Indian Government on October 5, 2006 for increasing the salaries of government employees of Indian Republic. This commission has been setup under Justice B.N.Srikrishna for a time period of 18 months. Other members were Prof. Ravindra Dholakia, Mr. J.S.Mathur and Secretary Smt. Sushama Nath. Report of Sixth Central Pay Commission was submitted to Finance Minister P. Chidambaram by B. N. Srikrishna on March 24, 2008. In this Pay commission report, over 50 % hike is there for top Government officials. These are some highlights of the 6th Pay Commission Report.

• The revised pay scales are effective from January 1, 2006. Recommendations relating to allowances will be also implemented prospectively.
• To remove stagnation in government jobs, introduction of running pay bands for all posts in the Government presently existing in scales below that of Rs 26,000.
• 4 distinct running pay bands are recommended — one running band each for all categories of employees in groups ‘B’ and ‘C’ with 2 running pay bands for Group A posts.
• The posts of Secretary and Cabinet Secretary will be kept in distinct pay scales.
• A separate running pay band, designated as -1S scale, will not be counted for any purpose as no future recruitment will be made in this grade and all the present Group D employees not possessing the prescribed qualifications are to be upgraded and placed in the Group ‘C’ running pay band PB-1 after they are suitably retrained. Group D employees possessing the minimum prescribed qualifications will be placed in PB-1 pay band straightaway.
• Minimum salary at the entry level of PB-1 pay band will be Rs 6660 (Rs 4860 as pay in the pay band plus Rs 1800 as grade pay). Maximum salary at the level of Secretary/equivalent will be Rs 80000.
• Every post, barring that of Secretary/equivalent and Cabinet Secretary/equivalent will have a distinct grade pay attached to it. Grade pay (being a fixed amount attached to each post in the hierarchy) will now determine the status of a post with a senior post being given higher grade pay.
• The total number of grades are reduced to 20 spread across four distinct running pay bands; one Apex Scale and another grade for the post of Cabinet Secretary/equivalent as against 35 standard pay scales existing earlier.
• At the time of promotion from one post to higher post, the grade pay attached to posts in different levels within the same running pay band to change. Additionally, increase in form of one increment will be given at the time of promotion. A person stagnating at the maximum of any pay band for more than one year continuously will be placed in the immediate next higher pay band without any change in the grade pay.
• Annual increments will be paid in form of 2 and half percent of the total of pay in the Pay Band and the corresponding grade pay. The date of annual increments, in all cases, will be first of July. Employees completing six months and above in the scale as on July 1 will now be eligible for hike.