New Delhi, Sep 25 (IANS): An estimated eight million central government employees and pensioners can now look forward to higher emoluments with the constitution of the Seventh Central Pay Commission (CPC), which the government announced Wednesday.

"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," Finance Minister P. Chidambaram said in a statement.

The 7th Pay Commission will go into the salaries, allowances and pensions of central government employees and pensioners, including those in defence and railways.

The government constitutes Pay Commissions once around every ten years to revise the pay scales of its employees.

The Sixth Pay Commission was implemented from January 1, 2006, the fifth from January 1, 1996, and the fourth from January 1, 1986.

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, the statement said.