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.
(Press Information Bureau)
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