The Fifth paycommision was set up on 1995 march and implemented on September 1996 with dues back dated
to 1 Jan 1995. During this pay commision the whole ADA and DA was merged to basic and 5 % DA instiututed to the gross amount . Grade system such as all CG employees were grouped in to X, Y ,and Z cateogaries according to nature of job. The Fixation of pay was developed for all these cateogories also decided to merge DA with Basic when the DA attain 55 percentage of Basic Pay Hill station allowance and hardliving allowances were enhanced also exempted from Tax or additional deduction, According to the Last agreement the next pay commission was planned to set up on 2005 March but after a nation wide strike by CG employees and other memorandum the commision was set up only on 2006 October , The results and declaration of the commission is still awaited .
Sixth Pay Commission
Main article: Sixth Central Pay Commission In July 2006, the Cabinet approved setting up of the sixth pay commission. This commission has been set up 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. The employees had threatened to go on a nationwide strike if the government failed to hike their salaries. Reasons for the demand of hikes include rising inflation and rising pay in the private sector due to the forces of Globalization. The Class 1 officers in India are grossly underpaid with an IAS officer with 25 years of work experience earning just Rs.55,000 as his take home pay. Pay arrears are due from January 2006 till September 2008. Almost all the Government employees received 40% of the pay arrears in the year 2008 and balance 60% arrears (as promised by Government) has also been credited in Government employees account in the year 2009. The Sixth Pay Commission mainly focused on removing ambiguity in respect of various pay scales and mainly focused on reducing number of pay scales and bring the idea of pay bands. It recommended for removal of Group-D cadre.