Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016. The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defense and railways, and about 30 lakh pensioners, comes ahead of the Assembly elections in five states in November and the general elections next year.
The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.