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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source: PIB
