Countdown to election: Government sets up 7th pay commission
Moneylife Digital Team 25 September 2013

The setting up of pay commission once again comes ahead of the assembly elections in five states in November and the general elections next year

Ahead of general elections, the Indian government on Wednesday announced constitution of the Seventh Pay Commission, which will look into increasing salaries, allowances and pensions of about 80 lakh of its employees and pensioners.

 

In a statement, finance minister P Chidambaram, said, "Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from 1 January 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 five states in November and the general elections next year.

 

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.

 

As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from 1 January 2016, Chidambaram said.

 

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

Comments
Ramesh Iyer
1 decade ago
Seems this UPA govt is going all out to woo all classes of our population. With the FSB and NREGA it hopes to pocket rural votes, while with this kind of action it hopes to win votes of its own employees. In a 120 crore population, less than a crore are government servants, so in the large scheme of things, it doesn't appear to be a significant number. Moreover, the 7th Pay Commission recommendations will be effective Jan'16, and who knows which coalition govt will be in power at the time, and how they will treat the Commission's recommendations.
The public should see through such strategic moves by this corrupt UPA govt and elect leaders wisely the next time.
Pantulu
Replied to Ramesh Iyer comment 1 decade ago
Yes the present central government has to go. Unfortunately people are not able to see through the games played by the so-called government headed by an Economist who could do nothing to improve the lot of common people.They are acting in such a way that similar criminals who toe their line will get elected. The recent case of Jagan getting bail in spite of his plunder is a classic example of their intentions. We do not have a leader who can convincingly explain such things to people.
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