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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