Government mandates 7th Pay Commission to revise salaries

The CPC's report will be applicable on Central Government employees, All India Services, personnel of the Union Territories, officers and employees of the Indian Audit and Accounts Department, Members of regulatory bodies, officers and employees of the Supreme Court and personnel of Defence Forces.

The panel has also been asked to examine the “principles which should govern the structure of pension and other retirement benefits”, including revision of pension for those who have retired prior to the date of effect of these recommendations.

There are about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners.

The CPC has also been asked to provide the likely impact of the recommendations on the finances of the state governments (which usually adopt the recommendations with some modifications).

It has also been asked to keep in view the best global practices and their adaptability and relevance in Indian conditions while making the recommendations.

Oil Secretary Vivek Rae is full time Member of the Commission, while Rathin Roy (Director, NIPFP) is part-time Member and Meena Agarwal (OSD, Department of Expenditure) is Secretary.

Central Pay Commissions are periodically constituted to go into various issues of emoluments' structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.

Prime Minister Manamohan Singh had approved setting up of the 7th Pay Commission in September 2013.

The 6th Pay Commission was implemented with effect from January 1, 2006; the fifth from January 1, 1996 and fourth from January 1, 1986.