Sixth Pay Commission for Govt Employees: Cabinet

New Delhi, July 20: The Cabinet today decided to set up the Sixth Central Pay Commission which will also recommend the interim relief.

Prime Minister Manmohan Singh, who presided over the Cabinet meeting, would announce the members of the commission, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.

The Commission will comprise one Chairman in the rank of Minister of State, one part-time member and one Member-Secretary in the rank of Secretary or Additional Secretary at the Centre.

The Commission is expected to make its recommendations in 18 months from the date of its constitution.

The Fifth Pay Commission, set up in April 1994, had given its report in January 1997 and its recommendations had a financial implication of Rs 17,000 crore for the Centre.

The commission would also go into certain aspects of service conditions of Central Government employees, Mr Dasmunsi said. The other terms of reference of the commission would be announced at the time of its constitution. Though the Twelfth Finance Commission (TFC) headed by former RBI Governor C Rangarajan had advised the government against setting up pay commissions at regular intervals as the Fifth Pay Commission had driven many state governments virtually to bankruptcy.

So far, all the state governments have also been revising the salaries of their employees on the basis of the Central Pay Commission recommendations.

Today's Cabinet decision was taken despite the TFC caution in view of the employees' long-standing demand and the consent given by as many as 14 states. Of the 16 states which had responded to the Centre's qeries, only two states -- the BJP-ruled Madhya Pradesh and Gujarat -- had opposed the idea of setting up the Sixth Pay Commission, Mr Dasmunsi said.

UNI