NEW DELHI: The union cabinet will on Thursday freeze the terms of reference of the seventh pay commission, allowing the government to take credit for recalibration of salaries of central government employees that could take up to two years.
The cabinet will also consider a proposal to set up a non-statutory coal regulator and also another one to convert 7,200 kms of state roads to national highways, which could come handy when the UPA seeks votes.
The seventh pay commission will be headed by retired Supreme Court judge Ashok Kumar Mathur. It will submit its report in 19 months and the award will be effective January 2016, the government had said earlier this month.
The award will benefit nearly 35 lakh central government employees and also cover defence personnel.
The commission will have Petroleum and Natural Gas Secretary Vivek Rae as full time member while Rathin Roy, Director, National Institute of Public Finance and Policy will be a part time member. The terms of reference will spell out the categories of employees covered by the review that seeks to adjusts salaries usually after a decade. In the interim, central government employees get two installments of dearness allowance every year to compensate for price rise.
The government can also task the commission with any other issue tied to employee compensation.
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