Mumbai: The government has approved the setting up the Sixth Pay Commission for the employees of the central government. The term of the commission would be 18 months, information and broadcasting minister Priyaranjan Dasmunshi said after the cabinet meeting.
"The commission will comprise one chairman of the rank of minister of state, one part-time member and one member-secretary of the rank of secretary or additional secretary in the central government," Munshi said, adding, the chairman and other members of the commission would be appointed by the prime minister.
The commission will also examine the need for payment of interim relief to the employees.
The recommendations of the previous finance commission, released in January 1997, had brought a Rs17,000 crore additional burden on the exchequer.
Munshi said the decision to constitute the new pay commission has been taken after consultations with the states as they were expected to face similar demands from their own employees.
"Out of as many as 16 states that sent their comments some like Gujarat and Madhya Pradesh were against it. Some states wanted the Centre to share the burden of the pay commission with the states," he said.
Gujarat and Madhya Pradesh are ruled by the Bharatiya Janata Party.