The government Tuesday announced setting up of the Seventh Central Pay Commission under the chairmanship of retired Supreme Court judge Ashok Kumar Mathur to review the salaries of over 5 million employees.

The panel will submit its report in two years and the recommendations would be implemented from Jan 1, 2016, a finance ministry statement said.

Prime Minister Manmohan Singh has approved the composition of the Commission that has one full-time and one part-time member, besides the chairman, the statement added.

Petroleum and Natural Gas Secretary Vivek Rae has been appointed a full-time member, while National Institute of Public Finance and Policy director Rathin Roy is a part- time member.

Meena Agarwal, an officer on special duty in the finance ministry’s expenditure department, has been appointed the Commission’s secretary.

  Government, sets up 7th pay commission