The Union Cabinet 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 the7th 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.
NDTV's Barkha Dutt speaks to Finance Minister P Chidambaram. Here's the full transcript of the interview: