Terms and references of Seventh Pay Commission approved by the Central Cabinet on 28.02.2014
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The
Union Cabinet today gave its approval to the Terms of Reference of 7th
Central Pay Commission (CPC) as follows:-
a) To
examine, review, evolve and recommend changes that are desirable and feasible
regarding the principles that should govern the emoluments structure including
pay, allowances and other facilities/benefits, in cash or kind, having regard
to rationalization and simplification therein as well as the specialized needs
of various Departments, agencies and services, in respect of the following
categories of employees:-
i.
Central
Government employees-industrial and non-industrial;
ii.
Personnel
belonging to the All India Services;
iii.
Personnel
of the Union Territories;
iv.
Officers
and employees of the Indian Audit and Accounts Department;
v.
Members
of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of
Parliament; and
vi.
Officers
and employees of the Supreme Court.
b) To
examine, review, evolve and recommend changes that are desirable and feasible
regarding principles that should govern the emoluments structure, concessions
and facilities/benefits, in cash or kind, as well as retirement benefits of
personnel belonging to the Defence Forces, having regard to historical and
traditional parities, with due emphasis on aspects unique to these personnel.
c) To
work out the framework for an emoluments structure linked with the need to
attract the most suitable talent to Government service, promote efficiency,
accountability and responsibility in the work culture, and foster excellence in
the public governance system to respond to complex challenges of modern
administration and rapid political, social, economic and technological changes,
with due regard to expectations of stakeholders, and to recommend appropriate
training and capacity building through a competency based framework.
d) To
examine the existing schemes of payment of bonus, keeping in view, among other
things, its bearing upon performance and productivity and make recommendations
on the general principles, financial parameters and conditions for an
appropriate incentive scheme to reward excellence in productivity, performance
and integrity.
e) To
review the variety of existing allowances presently available to employees
in addition to pay and suggest their rationalization and simplification, with a
view to ensuring that the pay structure is so designed as to take these into
account.
f) To
examine the principles which should govern the structure of pension and other
retirement benefits, including revision of pension in the case of employees who
have retired prior to the date of effect of these recommendations, keeping in
view that retirement benefits of all Central Government employees appointed on
and after 01.01.2004 are covered by the New Pension Scheme (NPS).
g) To
make recommendations on the above, keeping in view:
i.
the
economic conditions in the country and need for fiscal prudence;
ii.
the
need to ensure that adequate resources are available for developmental
expenditures and welfare measures;
iii.
the
likely impact of the recommendations on the finances of the State Governments,
which usually adopt the recommendations with some modifications;
iv.
the
prevailing emolument structure and retirement benefits available to employees
of Central Public Sector Undertakings; and
v.
the
best global practices and their adaptability and relevance in Indian
conditions.
h) To
recommend the date of effect of its recommendations on all the above.
The Commission will
make its recommendations within 18 months of the date of its constitution. It
may consider, if necessary, sending interim reports on any of the matters as
and when the recommendations are finalised.
The decision will
result in the benefit of improved pay and allowances as well as rationalization
of the pay structure in case of Central Government employees and other
employees included in the scope of the 7th Central Pay Commission.
Background
Central Pay Commissions
are periodically constituted to go into various issues of emoluments’
structure, retirement benefits and other service conditions of Central
Government employees and to make recommendations on the changes required.
Courtesy :Press Information Bureau,GOI
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