The Indian government on 20th July approved the setting up of the sixth pay commission for central government employees. The commission has been set up after 13 years. Its terms of reference would be announced shortly. It would be mandate of the commission to look at the remuneration paid to central government employees, and also suggest interim relief, besides addressing the issue of performance-linked benefit and the role of employees in the wake of change in governance practices. The pay commission's recommendations are expected around 2008, which could result in a decision just before the end of UPA's term. "Central government employees will be very happy to know that government has set up the sixth Pay Commission," parliamentary affairs and I&B minister P R Dasmunsi told after the cabinet meeting. The panel will comprise one chairman of the rank of minister of state, one part-time member and one member-secretary of the rank of secretary or additional secretary in the Central government. The last pay panel was set up in 1994 and its report came in January 1997. The financial implication of the fifth Pay Commission was to the tune of Rs 17,000 crore. The award of the fourth pay commission, which submitted three reports, with the last one in 1987, resulted in an outgo of over Rs 1,200 crore. Minister said state governments were consulted before taking a decision. He said the views of states were sought because once a decision was taken on the pay commission for central government employees, the state governments faced similar demands from their employees.