Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal

       It is really a happy news for all central government employees. The Prime Minister Manmohan Singh has approved composition of the 7th Pay Commission, which shows the central government‘s commitment to its announcement made by Prime Minister on 25th September 2013. “The Prime Minister has approved the composition of the 7th Central Pay Commission,” the Finance Ministry said in a statement today. The pay structure of the 50 lakh central government employees will be revised after the report submitted by 7th pay commission with effect from 1.1.2016. 

The Commission has been mandated to submit its report in two years’ time and its recommendations would be implemented from January 1, 2016.

The 7th Pay Commission will review the Pay Structure of about 50 lakh central government employees, including those in defence , Postal and railways, and about 30 lakh pensioners

The Finance Minister Shri P. Chidambaram has issued the following statement:

“The Prime Minister has approved the composition of the 7th Central Pay Commission as follows:

1. Shri Justice Ashok Kumar Mathur -  (Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal)	Chairman
2. Shri Vivek Rae   (Secretary, Petroleum & Natural Gas)	Member (Full Time)
3. Dr. Rathin Roy (Director, NIPFP)	Member (Part Time)
4. Smt. Meena Agarwal (OSD, Department of Expenditure,Ministry of Finance)”	Secretary

To read PIB press note, please CLICK HERE

Source : PIB Release, 4 February, 2014

GOVT ANNOUNCES SEVENTH PAY COMMISSION

New Delhi: The government on Wednesday decided to finally announce the Seventh Pay Commission for central government employees.

The Commission may submit its report in two years and the recommendations made by it will be implemented by 1 January, 2016.

This move will benefit about 50 lakh central govt employees and 30 lakh pensioners.

Previously the government had admitted that demands were made for setting up of 7th Pay Commission, but no such proposal was under consideration for such exercise.

Last week, the Union Cabinet had approved a proposal to hike dearness allowance to 90 percent from existing 80 percent.

The increase in DA to 90 percent would result in additional annual expenditure of Rs 10,879 crore.

There would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA