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.
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Personnel of the Union
Territories;
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iv.
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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.
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the need to ensure
that adequate resources are available for
developmental expenditures and welfare
measures;
|
iii.
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the likely impact of
the recommendations on the finances of the State
Governments, which usually adopt the
recommendations with some
modifications;
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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)
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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 7thCentral
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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