*For Central Government employees and retirees..*

Posted: 28 Feb 2014 03:35 AM PST

*7th Central Pay Commission Terms of Reference - Cabinet approved ToR of
7th CPC*

  *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.

-



-- 
With best wishes

S Chander

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