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Seventh Pay Commission for Central Government Employees

Government announces 7th Pay Commission for Central Employees

Ahead of elections, the government on 25th September, 2013 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 1st January, 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 1st January, 2016, Chidambaram said.

The Sixth Pay Commission was implemented from 1st January, 2006, fifth from 1st January, 1996 and fourth from 1st January, 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.

About Pay Commission

  • Pay Commission are set up by the Government from time to time to recalibrate salaries of Government Employees.
  • They are usually set up every 10 Years.
  • The recommendations of 6th Pay Commission became effective 1st January, 2006.
  • State Governments usually adopt the recommendations with suitable modifications.
  • Government salaries are adjusted for inflation twice a year.
  • Pay Commissions try and see if salaries are appropriates.
  • They also address and distortion that may have arisen.

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