A Pay Commission is a panel comprised of members of the Union Cabinet of India for hiking the salaries of government employees.

History
Since India's Independence, six pay commissions have been set up on a regular basis to review and make recommendations on the work and pay structure of all civil and military divisions of the Government of India

Sixth Pay Commission
In July 2006, the Cabinet approved setting up of the sixth pay commission. This commission has been setup under Justice B.N.Srikrishna with a timeframe of 18 months. The cost of hikes in salaries is anticipated to be about Rs. 20,000 crore for a total of 5.5 million government employees as per media speculation on the 6th Pay Commission, the report of which is expected to be handed over in late March/early April 2008.

Fifth Pay Commission
The Fifth Pay Commission was set up in 1994 and implemented in 1997 at a cost of Rs. 17,000 crore.

Fourth Pay Commission
Constituted in June 1983, its report was given in three phases within four years and the financial burden to the government was Rs.12.82 billion.

Third Pay Commission
The third pay commission set up in April 1970 gave its report in March 1973, and created proposals that cost the government Rs.1.44 billion.

Second Pay Commission
The second panel had been set up in August 1957 and had given its report exactly after two years, with a financial impact was Rs.396 million.

First Pay Commission
The first pay commission was constituted in May 1946, and had submitted its report in a year.