- Congress welcomes constitution of Seventh Pay Commission
from January 1, 2011 as in the case of Central PSUs whose employee pay scales are revised every five years."
During the discussions with the government, Kutty said, the Confederation would press for merger of up to 50 per cent of dearness allowance with the basic pay, which is a prerequisite for setting up a pay commission.
The merger of DA with basic pay helps central government employees as certain allowances are paid as proportion of the basic pay and hence merger results in higher allowances.
Commenting on the decision, ICRA senior economist Aditi Nayar said, "it should be viewed in the light of the recommendation of the 13th Finance Commission that structural shocks like arrears related to Pay Commission awards should be avoided and the award should commence from the day of acceptance."
New pay commission is outcome of election force: Maira
Constitution of the 7th Pay Commission is an "election force", Planning Commission member Arun Maira said today.
"All government employees will want it while others may not... This is a big election force," Maira said on the sidelines of a FICCI organised seminar on India's Regulatory Framework here.
"It is an interesting situation since it is election time," he said when asked about the timing for it.
"You need to get elected otherwise you cannot do what you want to do," he added.
The recommendations of the Commission will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, coming ahead of the assembly elections in five states in November and the general elections next year.