The 7th Central Pay Commission faces major challenges in setting pay structures that are competitive yet affordable, attractive yet acceptable, forward looking yet adaptable, and simple yet rational. It must consider the uniformity and relativity emphasized in India's civil service structure and pay scales. It also needs to balance ease of administration through simple, transparent pay fixation rules with addressing employees' perspectives like ensuring pay appropriately reflects qualifications, skills, and hierarchy positions. Additionally, the Commission must acknowledge issues like diminished promotional avenues that have reduced motivation, and structure emoluments to provide career progression and financial upgradation to keep the workforce motivated.