TERMS OF REFERENCE OF 7th CPC- Approved by Cabinet Today (28/2/2014)
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. 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.
