Press Information Bureau 

Government of India

Ministry of Finance 

25-September-2013 11:50 IST

FM: Prime Minister Approves the Constitution of Seventh Central Pay Commission; Recommendations are Likely to be implemented with effect from 1st January, 2016 

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:

4th CPC                       1.1.1986

5th CPC                       1.1.1996

6th 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 7th 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 7th Pay Commission will be finalised and announced shortly after consultation with major stakeholders.

Enhancement of ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks

The Union Cabinet today approved the proposal of the Department of Posts to enhance the ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks from Rs. 2,500/- to Rs.3,500/- same as that prescribed for the regular departmental employees. The decision would be applicable with prospective effect that is from the accounting year 2012-13 payable in 2013-14.

The increase in bonus calculation ceiling will restore the long established parity between regular departmental employees and Gramin Dak Sevaks on the issue of payment of bonus. This decision will benefit 2.63 lakh Gramin Dak Sevaks working in the Department of Posts, who play a very vital role in providing postal, financial and insurance services in the rural, hilly and tribal areas of the country.

Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 01.07.2013