7th Pay Commission set up; may raise retirement age

Last Updated: Wed, Sep 25, 2013 13:46 hrs

New Delhi: An estimated eight million central government employees and pensioners -  50 lakh employees and 30 lakh pensioners - can now look forward to higher emoluments with the constitution of the Seventh Central Pay Commission (CPC), which the government announced Wednesday.

"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 will go into the salaries, allowances and pensions of central government employees and pensioners, including those in defence and railways.

While analysts expect a burden of Rs one lakh crore a year from the seventh pay commission awards, the finance ministry said don't pre-judge the issue, let terms of reference be decided first.

Officials said next in the offing could be a decision to increase the retirement age of government employees to 62 years from the current 60.

The government constitutes Pay Commissions once around every ten years to revise the pay scales of its employees.

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

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