PTI | Sep 25, 2013,
12.30 PM IST
NEW DELHI: Ahead of
elections, the government on Wednesday announced constitution of the Seventh Pay Commission,
which will go into the salaries, allowances and
pensions of about 80 lakh of its employees and pensioners.
"Prime
Minister Manmohan Singh approved the constitution of the
7th Pay Commission. Its recommendations are likely to be implemented with
effect from January 1, 2016", finance minister P Chidambaram said in a statement.
The setting up of the
Commission, whose recommendations will benefit about 50 lakh central government
employees, including those in defence and railways, and about 30 lakh
pensioners, comes ahead of the assembly elections in 5 states in November and
the general elections next year.
The government
constitutes Pay Commission almost every ten years to revise the pay scales of
its employees and often these are adopted by states after some modification.
As the Commission takes
about two years to prepare its recommendations, the award of the seventh pay
panel is likely to be implemented from January 1, 2016, Chidambaram said.
The Sixth Pay Commission was implemented from January 1,
2006, fifth from January 1, 1996 and fourth from January 1, 1986.
The names of the
chairperson and members of the 7th Pay Commission and its terms of reference
will be finalized shortly after consultation with major stakeholders,
Chidambaram said.
