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Finance Minister Mr.P.Chidambaram has announced the constitution of the Seventh Pay Commission, (7th Pay Commission). He said “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". P. Chidambaram has also told that 7th Pay Commission will be allowed about two years to submit its report. It is expected that report will come in 2016 and implemented from 1st January, 2016. 7th Pay Commission, whose recommendations will benefit about 50 lakh central government employees, and about 30 lakh pensioners.The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalised shortly after consultation with major stakeholders, Mr. Chidambaram said.