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 central government 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 in Expenditure 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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