The Union Cabinet today gave its approval to the Terms of
Reference of 7thCentral 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.
