25 Sep, 2013 01:47 PM

7th Pay Commission for central govt employees announced

Its election bonanza for the central government employees. It was 10% DA last week And now the Prime Minister Dr. Manmohan Singh have today approved the constitution of the 7th Pay Commission, which is likely to impact at least 85 lakh central government employees and pensioners. It is one of the most important demand by the central government employees of India.

The 7th Pay Commission is expected to recommend a substantial hike in the salary of all Central government employees. The timing of the decision makes it clear that the government is trying to please the employees before the next Lok Sabha elections.

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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, Chidambaram said.

Generally pay commission will take almost two years to submit its reports. Six pay commission was effective from 1st June, 2006. "Its (7th Pay Commission's) 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 comes ahead of the Assembly elections in five states this year and the general elections next year.

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The government constitutes Pay Commission every 10 years to revise the pay scales of its employees and often these are adopted by states after some modification.

The recommendations of the sixth Pay Commission were implemented from January 1, 2006; fifth from January 1, 1996, and fourth from January 1, 1986.

There are at present around 50 lakh central government employees and 35 lakh pensioners, who stand to benefit from the recommendations from the Pay Commission.