Government announces 7th Pay Commission for central employees

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Chidambaram

Ahead of elections, on wednesday the government announced constitution of the 7th Pay Commission, which will go into the allowances, Salaries and pensions of about 80 lakh of its employees and pensioners.

Finance Minister P Chidambaram said in a statement “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”. 

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. 

Chidambaram sai that “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.” 

The sixth Pay Commission was implemented from January 1, 2006, fifth from January 1, 1996 and fourth from January 1, 1986. 

Chidambaram said “The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalised shortly after consultation with major stakeholders.”