New Delhi, Sep 25 (PTI): The government on Wednesday announced the constitution of the Seventh Pay Commission for 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 five states in November and the general elections next year.

The government constitutes a pay commission almost every ten years to revise the pay scales of its employees and the awards of such commissions are often adopted by states after some modification.

As the Commission takes about two years to prepare its recommendations, the award of the latest body is likely to be implemented from January 1, 2016, Chidambaram said.

The Sixth Pay Commission’s award was implemented from January 1, 2006, that of the Fifth from January 1, 1996, and of the Fourth from January 1, 1986.

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

The Congress, welcoming the announcement, pointed out that the Bharatiya Janata Party led National Democratic Alliance government had “rejected” the “legitimate” formation of the Sixth Pay Commission in 2003.

Ajay Maken, the Congress general secretary in-charge of Communication, started tweeting the news soon after the government’s announcement.

”7th Pay Commission of Govt employees announced. Except for 6th Pay Commission all Pay commissions are set up in 3rd year of a decade....The government should attract best of talents as its employees. Pay Commissions help in attracting and also retaining best available talents,” Maken commented on the microblogging site Twitter.

He recalled that the NDA government had rejected the Sixth Pay Commission in 2003.

“NDA rejected the legitimate formation of 6th Pay Commission in 2003.Congress setup 6th Pay Commission in 2005, now again the 7th CPC in 2013,” Maken tweeted.