Ahead of elections, the government today 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, increasing the government’s payout burden by an estimated Rs 1 lakh crore.

A pay commission is usually formed after every 9 years.
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 finalised shortly after consultation with major stakeholders, Chidambaram said. The impact of the 6th pay commission on the government was around Rs 40,000 crore.

0 comments