There is no much difference between both
6th & 7th CPC in terms of reference except to recommend the date of effect
of 7th CPC recommendations:
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.
7th Central Pay Commission Terms of Reference – 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.
