Employee pay scales are revised every five years.

7CPC: Seventh Pay Commission for central government employees announced.The government on Wednesday decided to finally announce the Seventh Pay Commission for central government 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 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 government has announced constitution of the Seventh Pay Commission, which will look into the salaries, allowances and pensions of about 80 lakh of its employees and pensioners.

We welcome the government’s move to set up the 7th Pay Commission but we have a reservation. It should be implemented with effect from January 1, 2011.  Central employee pay scales are revised every five year. The merger of DA with basic pay helps central government employees as certain allowances are paid as proportion of the basic pay and hence merger results in higher allowances.