As I had already foretold, political considerations have made the Government approve the constitution of VII Central Pay Commission. Prime Minister Dr.Manmohan Singh, today approved the constitution of the 7th Pay Commission. The Government will now issue a notification regarding the constitution of the commission, its terms of reference and the members. The entire process could take upto 1 month and the Pay Commission should be constituted in the month of November, 2013. The Commission will then have 2 years to submit its report to the Government.
However the implementation of the 7th Pay Commission will be in the hands of who ever is elected to the Lok Sabha with majority in the General Elections 2014. If the party which wins the elections has absolute majority, we can expect the pay commission to be implemented well on the targeted date i.e. 1.1.2016. But that is the hypothetical scenario. Right now the news is that the Pay Commission has been approved with the polls in mind and round about 80 lakh voters plus their families.
In a separate breaking news, the Government will increase the retirement age of the Government employees by two years to 62 years. The retirement age order should be enacted on 8th October 2013 however the affect of the order on those personnel retiring before October, 2013 is not clear as of yet. Delhi and Chhattisgarh have already decided to enhance the retirement age of their employees to 62 years.
You can watch the CNBC18's video on 7th Pay Commission below