The Central Pay Commission (CPC) is an expert body set up by the Government of India to review and recommend changes in the salaries, allowances, and pensions of central government employees and defense personnel. While it ensures fairness and equity in public sector compensation, CPC recommendations often pose fiscal challenges due to their impact on government expenditure. Key issues include infrequent revisions, weak links between pay and performance, and disparities across services and states. Future reforms suggest establishing a permanent pay review body, introducing performance-linked pay, and aligning revisions with fiscal sustainability. Overall, the CPC plays a crucial role in balancing employee welfare, administrative efficiency, and fiscal discipline in India.
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