The Union Cabinet today gave its approval to the
Terms of Reference of 7thCentral 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.
The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2014, in cash, but not before the disbursement of the salary for the month of March 2014 at the rate of 10 percent increase over the existing rate of 90 percent. 
