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The central Govt. today decided for formation of the VII Central Pay Commission which will recommend the new pay revision for the 85 and odd lakh central government employees and pensioners including the defence personnel. The recommendation of the CPC will be with effect from 1st January 2016. Probably this is the first time that the CPC has been constituted more than 2 years back. The Central govt. employees had demanded for pay revision with effect from 01-01-2011 after 5 years of the last CPC, the recommendations of which were implemented from 01-01-2006. The appointment of this CPC and the statement of Finance Minister P.Chidambaram that the recommendations of this CPC will be w.e.f. 01-01-2016 is against the demand of the Confederation of CGE and workers.

Now for the last 3 CPCs, the period has been 10 years each, but earlier the period was longer. The I CPC recommendations were implemented from 1946, II CPC from 01-01-1960, III CPC from 1974, IV from 1986, V from 01-01-1996 and the VI CPC from 01-01-2006. Now the present VII CPC will be effected from 01-01-2016.

The present announcement of the government is, of course, with an eye on the coming elections both in some states and the Parliament elections in 2014. Most of the states implement the CPC recommendations for their employees also.