Ahead of the Assembly elections in five States and general elections next year, the Centre has decided to constitute the 7th Central Pay Commission (CPC) to revise the salaries of its staff and pensioners.

Nearly five million existing Central Government staff and three million pensioners are expected to benefit from the award of the CPC which will be implemented from January 1, 2016.

The announcement was made by Finance Minister P. Chidambaram here on Wednesday. Prime Minister Manmohan Singh has given his nod for setting up the seventh CPC, Chidambaram said.

Allowing about two years for the seventh CPC to submit its report, the recommendations are likely to be implemented with effect from January 1, 2016, he said.

The names of the Chairperson and members as well as the terms of reference of the 7th pay commission will be finalised and announced shortly after consultation with major stakeholders, Chidambaram said.

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

The sixth central pay commission recommendations were implemented from January 1, 2006.

While the current UPA combine will gain electoral mileage out of this announcement, it will be for the next Government to look for the resources to foot the bill, critics said.

Coming in support of Government employees, Commerce and Industry Minister Anand Sharma said that Pay Commission was the right of the employees.

He expressed confidence that the Government will be able to fund the pay commission award.

“It is the right of employees to have Pay Commission. When the recommendations come the Government will be able to implement them. You do not do something for which you do not have money available,” Sharma told reporters here.

>srivats.kr@thehindu.co.in

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