Terms of
Reference of the Sixth Central Pay Commission
A.
To examine the principles, the date of effect thereof that should govern the
structure of pay, allowances and other facilities/benefits whether in cash or in kind to the following
categories of employees :-
1. Central government employees – industrial
and non-industrial.
2. Personnel belonging to the All India
Services.
3. Personnel belonging to the Armed
Forces.
4. Personnel to the Union Territories.
5. Officers and employees of the
Indian Audit and Accounts Department.
6. Members of the regulatory bodies
(excluding the RBI) set up under Acts of Parliament*.
7. Officers and
employees of Supreme Court of
India**.
B. To transform the Central Government Organisations into
modern, professional and citizen-friendly entities that are dedicated to the service of the people.
C. To
work out a comprehensive pay
package for the categories of Central Government employees mentioned at (A)
above that is suitably linked to promoting efficiency, productivity and economy
through rationalization of structures, organizations, systems and processes
within the government, with a view leveraging economy, accountability,
responsibility, transparency,
assimilation of technology and discipline.
D. To harmonize the
functioning of the Central Government Organisations with the demands of the
emerging global economic scenario. This would also take in account, among other
relevant factors, the totality of benefits available to the employees, need of
rationalization and simplification, thereof, the prevailing pay structure and
retirement benefits available under the Central Public Sector Undertakings, the
economic conditions in the
country, the need to observe fiscal prudence in the management of the
economy, the resources of the Central Government and the demands thereon on
account of economic and social development, defence, national security and the
global economic scenario, and the impact upon the finances of the States if the
recommendations are adopted by the States.
E. To examine the principles
which should govern the structure of pension, death-cum-retirement gratuity,
family pension and other terminal or recurring benefits having financial
implications to the present and former Central Government employees appointed
before January 1, 2004.
F. To make recommendations with respect to the
general principles, financial parameters and conditions which should govern
payment of bonus and the
desirability and feasibility of introducing Productivity Linked Incentive Scheme in place of the existing ad hoc
bonus scheme in various Departments and to recommend
specific formulae for determining the productivity index and other related
parameters.
G. To examine desirability and the need to sanction any
interim relief till the time the recommendations of the Commission are made and
accepted by the Government. *A. vi substituted by Ministry of Finance Resolution
No.5/2/20006-E.III (A) dated the 7th December, 2006. **A. vii substituted by
Ministry of Finance Resolution No.5/2/2006-E.III (A) dated the 8th August,
2007.
The Commission will devise its own procedure and may appoint such
Advisers, institutional consultants and experts, as it may consider necessary
for any particular purpose. It may call for such information and take such
evidence, as it may consider necessary. Ministries and Departments of the
Government of India will furnish such information and documents and other
assistance as may be required by the Commission.
The Government of India
trusts that State Governments, Service Association and others concerned will
extend to the Commission their fullest cooperation and assistance. The
Commission will have its headquarters in Delhi.
The Commission will
make its recommendations within 18 months of the date of its
constitution. It may consider, if necessary, sending reports on any of the
matters as and when the recommendations are
finalized.
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Terms of Reference of the 7th Central Pay
Commission
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.
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