Government to set up first separate pay commission for Indian military

India's armed forces are likely to have their own pay panel for the first time since independence.

This comes as the government prepares to set up the seventh Pay Commission to decide on salary hikes for the 50 lakh central government employees, ahead of state polls and national elections due by May. The pay panel's recommendations are expected to be implemented from January 2016.

All three military chiefs had written to the Defence Minister last year, asking for pay parity with civilian employees. The armed forces have also been demanding the one rank one pension and one rank one pay rule.

They are also pushing for fixing rank pay and fixing pay structure for jawans and junior commissioned officers (JCOs).

In June last year, Defence Minister AK Antony had reportedly written to Prime Minister Manmohan Singh on "growing discontent among the services personnel due to the anomalies in payment and salaries."

Mr Antony had said that service personnel, ex-servicemen and pensioners were "equally agitated" and suggested that corrective action be taken or "things may take a bad turn."

A month later, the PM set up a four-member committee of secretaries, headed by the Cabinet Secretary, to look into the demands. The armed forces had then objected to the absence of military representation on the committee. Later, some of the anomalies were corrected, and the government had promised a separate pay commission for the armed forces.

Government salaries had been substantially hiked under the sixth pay commission headed by Justice BN Srikrishna. The revised pays fixed the salary of the Cabinet Secretary at Rs. 90,000 a month and Secretary at Rs. 80,000 per month, while making Rs. 6,660 as the minimum entry level salary.

Central Government Announces 7th Pay Commission.

Ahead of elections, the government on Wednesday announced constitution of the Seventh Pay Commission, which will go into the salaries, allowances and pensions of about 80 lakh of its employees and pensioners.

"Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016", finance minister P Chidambaram said in a statement.

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the assembly elections in 5 states in November and the general elections next year.
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.

As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.  The Sixth Pay Commission was implemented from January 1, 2006, fifth from January 1, 1996 and fourth from January 1, 1986.

The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalized shortly after consultation with major stakeholders, Chidambaram said.

PM Approves 7th Pay Commission

Prime Minister Manmohan Singh has given his assent for the setting up of the seventh Central Pay Commission. According to reports, Finance Minister P Chidambaram confirmed this on Wednesday.

The names of the members of the commission have not yet been revealed. It is expected that the chairperson and members, along with points of reference of the commission's undertakings, will be announced shortly.

The report could take about two years to be written, making January 1, 2016 the likeliest date for the recommendations of the commission to take effect from.

The sixth Central Pay Commission recommendations were implemented from January 1, 2006.