The Centre on Wednesday announced the seventh pay commission that will recommend higher salaries for nearly eight million of its employees and pensioners, a move that the Congress-led alliance would hope will give it some advantage in a poll year.
Revised salaries would likely take effect in two years — from January 1, 2016 — finance minister P Chidambaram said in a statement.
The last revision, which kicked in from January 1, 2006, saw pay cheques get bigger by an average 21%, costing the government an extra `17,000 crore annually. The employees also got one-off arrear payments of about ` 27,000 crore, driving up spending on assets — from cars to property.
The latest commission will recommend new pay structures and salary increment bands for all central government staff, including railways and defence personnel. The government usually accepts the recommendations with some changes.
The names of the commission’s chairperson and members as well as the terms of reference would be finalised and announced shortly after consultation with main stakeholders, Chidambaram said.
In a letter to defence minister AK Antony, Indian Air Force chief air chief marshal NAK Browne sought a fair representation of the armed forces in the pay commission.
The demand comes against the backdrop of alleged anomalies in the implementation of the last pay panel report. It is also learnt that the military has backtracked from its earlier demand for having a separate pay commission.
The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:
# 4th CPC: 1.1.1986
# 5th CPC: 1.1.1996
#6th CPC: 1.1.2006