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.
Source : PIB
