Terms
of Reference of the Sixth Central Pay Commission
A. To examine the principles, the date of effect thereof that should
govern the structure of pay, allowances and other facilities/benefits
whether in cash or in kind to the following categories of employees :-
1. Central government employees – industrial and non-industrial.
2. Personnel belonging to the All India Services.
3. Personnel belonging to the Armed Forces.
4. Personnel to the Union Territories.
5. Officers and employees of the Indian Audit and Accounts Department.
6. Members of the regulatory bodies (excluding the RBI) set up under Acts
of Parliament*.
7. Officers and employees of Supreme Court of India**.
B. To transform the Central Government Organisations into modern,
professional and citizen-friendly entities that are dedicated to the
service of the people.
C. To work out a comprehensive pay package for the categories of Central
Government employees mentioned at (A) above that is suitably linked to
promoting efficiency, productivity and economy through rationalization of
structures, organizations, systems and processes within the government,
with a view leveraging economy, accountability, responsibility,
transparency, assimilation of technology and discipline.
D. To harmonize the functioning of the Central Government Organisations
with the demands of the emerging global economic scenario. This would also
take in account, among other relevant factors, the totality of benefits
available to the employees, need of rationalization and simplification,
thereof, the prevailing pay structure and retirement benefits available
under the Central Public Sector Undertakings, the economic conditions in
the country, the need to observe fiscal prudence in the management of the
economy, the resources of the Central Government and the demands thereon on
account of economic and social development, defence, national security and
the global economic scenario, and the impact upon the finances of the
States if the recommendations are adopted by the States.
E. To examine the principles which should govern the structure of pension,
death-cum-retirement gratuity, family pension and other terminal or
recurring benefits having financial implications to the present and former
Central Government employees appointed before January 1, 2004.
F. To make recommendations with respect to the general principles,
financial parameters and conditions which should govern payment of bonus
and the desirability and feasibility of introducing Productivity Linked
Incentive Scheme in place of the existing ad hoc bonus scheme in various
Departments and to recommend specific formulae for determining the
productivity index and other related parameters.
G. To examine desirability and the need to sanction any interim relief till
the time the recommendations of the Commission are made and accepted by the
Government. *A. vi substituted by Ministry of Finance Resolution
No.5/2/20006-E.III (A) dated the 7th December, 2006. **A. vii substituted
by Ministry of Finance Resolution No.5/2/2006-E.III (A) dated the 8th
August, 2007.
The Commission will devise its own procedure and may appoint such Advisers,
institutional consultants and experts, as it may consider necessary for any
particular purpose. It may call for such information and take such
evidence, as it may consider necessary. Ministries and Departments of the
Government of India will furnish such information and documents and other
assistance as may be required by the Commission.
The Government of India trusts that State Governments, Service Association
and others concerned will extend to the Commission their fullest
cooperation and assistance. The Commission will have its headquarters in
Delhi.
The Commission will make its recommendations within 18 months of the
date of its constitution. It may consider, if necessary, sending
reports on any of the matters as and when the recommendations are
finalized.
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Terms
of Reference of the 7th Central Pay Commission
Cabinet approved TOR of 7th CPC 7th Central Pay Commission
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.
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