The Finance Minister Shri P.Chidambaram in a statement said here today that the Prime Minister has approved the constitution of the Seventh Central Pay Commission.

The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:

4^th CPC                       1.1.1986

5^th CPC                       1.1.1996

6^th CPC                       1.1.2006

The average time taken by a Pay Commission to submit its recommendations has been about two years. Accordingly, allowing about two years for the 7^th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016.

The names of the Chairperson and members as well as the terms of reference (ToR) of the 7^th Pay Commission will be finalised and announced shortly after consultation with major stakeholders.

Central Pay Commission constitution approved; recommendations expected after stakeholder consultation and subsequent implementation. Approval is announced for the Seventh Central Pay Commission, to be constituted with a Chairperson and members and to operate under terms of reference finalised after stakeholder consultation. The Commission is expected to prepare and submit recommendations within about two years, and, based on prior implementation intervals and the projected timeframe, its recommendations are likely to be implemented with effect from 1st January, 2016.