7TH PAY COMMISSION TERMS OF REFERENCE TO BE TAKEN UP BY CABINET TOMORROW – MANY PROPOSALS EXPECTED TO BE CLEARED BY CABINET

As per media reports, among many other proposals such as anti-graft bills, 7th Pay Commission Terms of Reference is likely to be taken up by Cabinet tomorrow for clearance.The Cabinet is likely to set the terms of reference of the 7th Pay Commission this week, paving the way for salary revision of over 50 lakh centralgovernment employees.The matter will be finalised at the proposed meeting as the government wants to settle the matter before model code of conducts are notified ahead of the general election, scheduled in April-May this year.The government has already approved the composition of the commission for revision of salaries of central government employees, including Railways and Defence. It would also revise the remuneration for 30 lakh pensioners.Former Supreme Court Judge Ashok Kumar Mathur, who also headed the Armed Forces Tribunal, will head the 7th Pay Commission. It has been mandated to submit its report in two years and its recommendations are to be implemented from January 1, 2016.The other members of the Commission include Oil Secretary Vivek Rae (full time Member), NIPFP Director Rathin Roy (part- time Member) and OSD inExpenditure Department Meena Agarwal (Secretary).In September, Prime Minister Manmohan Singh had approved the setting up of the Commission.
The government constitutes Pay Commission almost every 10 years. Often the revisions are adopted by states as well after some modification.The 6th Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and fourth from January 1, 1986.

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R S Gujral, is likely to be appointed Member-Secretary of 7th Pay Commission

R S Gujral, is likely to be appointed Member-Secretary of 7th Pay Commission.

The present Secretary Expenditure may be appointed as Member- Secretary of 7th CPC.

The Central Government is likely to notify the the pay commission within the next two months The timing is in such a way that it is well before the model code of conduct for the general elections comes into force. Such a move will bring a positive mood for the central government employees towards the government.

Additionally the Center is expected to give the panel enough time to prepare its report in the hope that the government would be a lot more comfortable vis-a-vis the fiscal deficit by the time the panel submits its report. Government employees have also asked the Center to consider merging dearness allowance with their pay, arguing that the Sixth Pay Commission, like the Centre, could not have anticipated the high inflation that has eroded real wages over the last decade.

The demand was made at a preliminary meeting held between the department of personnel and the employee representatives to discuss the proposed Seventh Pay Commission. It is learnt that the present Secretary Expenditure, R S Gujral, is likely to be appointed Member-Secretary of the 7th Pay Commission. The 1976 batch IAS officer of Haryana cadre Gujral is retiring on November 30th 2013. Shri Gujral was also Secretary ( Revenue) and having sufficient experience on functioning of CBEC & CBD

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government announced to constitute the 7th Pay Commission

The United Progressive Alliance (UPA) government Wednesday announced to constitute the 7^th Pay Commission - the commission that recommends the salary, allowance and pension structures of the government employees and ex-employees in parity to inflation.

Prime Minister Manmohan Singh has approved the setting up of the commission, finance minister P Chidambaram said in a statement.

The average time taken by a Pay Commission to submit its recommendations has been about two years.

Accordingly, allowing about two years for the commission to submit its report, the recommendations are likely to be implemented with effect from January 1, 2016.

The names of the Chairperson and members as well as the terms of reference (ToR) of the commission will be finalised and announced shortly after consultation with major stakeholders, Chidambaram said.

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

The announcement for setting up of the 7th Pay Commission has brought cheer to over 80 lakh central government employees.