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. Personn el 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 train ing 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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