PM approves setting up of 7th Central Pay Commission

October 1, 2013

The Prime Minister of India Manmohan Singh has approved the constitution of the Seventh Central Pay Commission (CPC). If we go by the average time of 2 years taken by a Pay Commission to submit its recommendations, it is expected that the recommendations of this Pay Commission will be implemented with effect from January 1, 2016.

Key points on the Central Pay Commissions
  • First CPC was constituted under the Chairmanship of Srinivasa Varadachariar in May 1946 and its report was submitted by 1947. The first Central Pay Commission was based on the basic idea of living wages to employees.
  • The 6th Central Pay Commission under the Chairmanship of B.N.Srikrishna was approved in July 2006.
  • The 7th CPC will recommend on the salaries, allowances and pensions of around 80 (50 lakh employees + 30 lakh pensioners) employees/pensioners of the Central Government, including Defence and Railways.
  • The CPC is constituted by the Union Government of India after almost every 10 years in order to revise the pay scales of employees. The recommendations of Pay Commission are always followed by all the states in India after a few changes.
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