New Delhi: In an effort to woo Central government employees before the next Lok Sabha elections, Prime Minister Manmohan Singh constituted the 7th Pay Commission on Wednesday. The new pay scale recommended by the Pay Commission will be implemented from January 1, 2016 as the government has given about two years to the 7th Pay Commission to submit its report.
The Pay Commission will give its recommendation on the salaries, allowances and
pensions of about 80 lakh central 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 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.
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.
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 in 2014.
The 6th Pay Commission was constituted in October 2006. It was implemented by the Centre ahead of 2009 Lok Sabha polls. Most of the Central government employees got a big pay hike because of it.
The government constitutes Pay Commission almost every 10 years to revise the pay scales of its employees and often these are adopted by states after some modification.
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