Ahead of elections, PM gives nod to Seventh Pay Commission
- David Headley connects the dots: Hafiz Saeed, ISI, failed Mumbai attacks
- David Headley: Travelled to India 8 times, changed name for passport
- Rs 1.14 lakh crore of bad debts: The great government bank write-off
- Caste came up in 3 suicide probes at Hyderabad University
- Uttar Pradesh has been turned into 'Islamic state': Sena mouthpiece on Ghulam Ali concert
Days before the Election Commission announces dates for assembly elections in five states including Delhi, the central government on Wednesday announced the setting up of the Seventh Pay Commission, which promises to lead to a sharp increase in the salaries of nearly 7 million central government employees and pensioners.
The report of the commission is, however, not expected until nearly two years after the Lok Sabha elections that are due before May 2014.
"The Prime Minister has approved the constitution of the Seventh Central Pay Commission," said a statement by Finance Minister P Chidambaram.
"The average time taken by a pay commission to submit its recommendations has been about two years. Accordingly, allowing about two years time (from now is necessary) for the Commission to submit its report by January 2016," the ministry said in the release.
The Sixth Pay Commission was set up in 2006, and gave its report after 18 months in March 2008.
The award of the sixth commission cost the government an additional Rs 26,035 crore in the first year, as per its own estimate. It was one of the main reasons why the Centre missed its fiscal deficit target for 2008-09. For most employees, salaries went up by 60-80 per cent. The World Bank had described the award of the earlier Fifth Pay Commission as the "single largest adverse shock" to Indian public finances.
The release said that the names of the chairperson and members, and the terms of reference of the seventh pay panel, would be decided soon.
Sources said the chairperson was likely to be a member of the judiciary — in accordance with the practice of the last pay panel, which was headed by Justice B N Srikrishna. Finance Secretary R S Gujral, who is due to retire later this year, could be appointed member secretary, the sources said.
- We have turned our back to the intense food and drinking water distress
- Strategies anchored in incubators fail to foster entrepreneurship
- Existing regime of film censorship is unconstitutional
- Section 377: A right to love
- PM Oli has been lucky, but his political survival looks uncertain
- Across the aisle- MGNREGA: Making a meal of words