Terms of Reference of 7th Central Pay
Commission have been approved by the Cabinet and are 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:-
Central Government employees - industrial and
non-industrial;
Personnel belonging to the All India Services;
Personnel of the Union Territories;
Officers and employees
of the Indian Audit and Accounts
Department;
Members of regulatory bodies (excluding the Reserve Bank
of India) set up under Acts of Parliament; and
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.
Courtesy: Major Navdeep Singh
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