"The Prime Minister has approved the composition of the 7th Central Pay Commission," the Finance Ministry said in a statement today.
The announcement for composition of the Commission comes ahead of imposition of model conduct which would come into force once the schedule for the general election due in April-May is notified.
The Retired Supreme Court Judge, who had also headed the Armed Forces Tribunal, has been appointed chairman of the Commission.
The Commission has been mandated to submit its report in two years time and its recommendations would be implemented from January 1, 2016.
The other members of the Commission, include, Oil Secretary Vivek Rae (full time Member), NIPFP Director Rathin Roy (part-time Member) and OSD in Expenditure Department Meena Agarwal (Secretary).
Earlier in September 2013, the Prime Minister had approved setting up of the 7th Pay Commission.
The recommendations of the Commission will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners.
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.
The sixth Pay Commission was implemented with effect from January 1,2006, the fifth from January 1, 1996 and fourth from January 1, 1986.