Government of India Cabinet
28-February-2014 16:34 IST
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, it’s bearing upon performance
and productivity and makes 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 finalized.
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.
