The Government of India has initiated the process to constitute the 7th Central Pay Commission along with Finalisations of its Terms of Reference, the composition and the possible time frame for submission of its Report. On September 25, 2013 then Finance Minister P Chidambaram announced that Prime Minister Manmohan Singh has approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016. Justice A.K Mathur will be heading the Seventh Pay Commission, announcement of which was done on 4 February 2014.
On 29 June 2016, Government accepted the recommendation of 7th Pay Commission Report with meager increase in salary of 14% after six month of intense evaluation and successive discussions. The Finance Minister of India claimed it historical increase of salaries due to little knowledge of Sixth Pay Commission