The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC)

Press Information Bureau,

Government of India

Cabinet

28-February, 2014

            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;

   vi.  Officers and employees of the Supreme Court.

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.

Source: PIB