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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.
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