Feel free to contribute on burning issues concerning the armed forces. Contributions would be acknowledged - Use the 'Comments' tab or email navdeepsingh.india[at]gmail.com. No operational/business/commercial matters to be discussed please. Legal advice/litigation related issues would strictly NOT be published or discussed or entertained. Information on this blog is opinion based and is neither official nor in the form of an advice. This is a pro bono online journal in public service related to issues, policies and benefits, and the idea behind it is to educate and not to create controversy or to incite. Be soft in your language, respect Copyrights.

Friday, February 28, 2014

Terms of Reference of the Seventh Central Pay Commission approved by the Cabinet

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.


18 comments:

Anonymous said...

" 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."

Good sense of 'Humor', on part of the drafter,as well one who approved the draft,TOR! :-)

PANKAJ BHARGAVA said...

Hi Navdeep,
Thanks...In Para (a), where are the Armed Forces...???

Mohammed Ali Pogaku said...

As given in many news articles, will this pave the way for the merger of dearness allowance with basic. Pl clear this doubt as I trust your analysis of the situation.

Peddi Venki said...

Where is GREF?General Reserve Engineer Force.

capital P said...

what is news on NFU, other matters which were cleared/ kept pending by group of ministers first and later by the committee of secretaries..

can you please provide some update ..

for a very long time you have not posted any article on the blog on these subjects

WG.CDR.V.SUNDARESAN(RETD) said...

Atleast now the PC should declare AFs as (1)CENTRAL GROUP1/CLASS A,(2)AS ALL INDIA SERVICE.(3)AFs must put on in the suffix as "i d s"(Indian Defence Service) OR
i m s(Indian Military Service)
v.sundaresan

quickstop said...

As per today's newspapers, the merger of DA / DR to the Basic is also included in the Terms of Ref in 7th CPC. This was not there in the 6th CPC but was there in the 5 CPC. Therefore, the DA / DR at 100% is approved wef 01 Jan 14 and payable in the next Fin Yr (01 Apr 14).

corona8 said...

@Mohammed Ali Pogaku: How was DA merged with basic pay before VI CPC implementation?

Now that VII CPC has been given a mandate, it can file an interim report recommending merger of a portion of DA with basic pay.

Vasundhra said...

In Para 1(a) Personnel belonging to the All India Services.
Where are the Armed Forces? If Armed Forces are covered under Para 1(a), than where is NON FUNCTIONAL FINANCIAL UPGRADATION(NFFU) due to Armed Forces during the regime of 6CPC If not covered under Para 1 (a) than How come the mention of AFs is omitted? Is it a deliberate 'OMISSION' or 'COMMISSION' ?
Services Hqrs please NOTE!!!!

Vasundhra said...

Para 1(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.

Para 1(b) is contradictory in nature because Who will explain unique aspects of Armed Forces without representations of AFs in the CPC. Presenting the case by AFs to the CPC & hearing the case in comparative terms with reference to other Services are totally different aspects therefore NON REPRESENTATION of AFs in CPC the term of reference in Para 1(b) remains deficient with the existing composition of CPC as such out come result for AFs by this composition is bound to remain deficient? Will concerned & affected party take note of.

Lt Col (Retd) A N Ramachandran said...

At Terms of Reference (b) the Pay Commission has been directed to apply themselves to the task "having regard to historical and traditional parities with due emphasis on aspects unique to these (Defence) personnel" To do justice, the Commission will need to revert to 26 Jan 1950 for the purpose of ensuring historical and traditional parity; and as regards the 'uniqueness' of the Armed Forces, the same will have to be emphatically explained to them as to how and why we are unique. This would have been easier if an Armed Forces rep was included in the panel.With so much dis-satisfacion in the Forces, both serving and retired, regarding "izzat" - which is directly linked to rank, status and pay, and the scores of unresolved anomalies from the previous CPCs, it would have been wise and prudent for the powers that be to include a Forces rep in the Commission.The Armed Forces need refurbishing on all fronts, and really fast.

Anonymous said...

@ Pankaj Bhargawa
Sir, Armed forces have been included as a separate paragraph. The sixth pay commission had just one line "Personnel belonging to Armed Forces".

Whether it is good or bad.. only time will tell.

Ranjay said...

what does it mean when they have removed Armed forces from the the original Para a & put them in Para b.....
does it affect the Armed forces Personnel in any way ?

Anonymous said...

Are the Armed Forces part of Seventh Pay Commission ??? Or are the Armed Forces are already part of All India Services...??

Cdr P S Nelson said...

Comparing the TOR of 6th and 7th PCs, the reference to Armed Forces Personnel is missing. Is there any chance of a separate PC for us???

Anonymous said...

Navdeep sir, I am reading your every post for last 2 years. Every where every body talk about U. Pl clear a doubt that EXS joined in central govt. jobs are eligible for how many days of leave encachment. Our office telling (300- No of days encashed in defence) ,we have joined as fresher. No pay protection, no seniority given, then how it is applied to us. Please clear it. We have great hope on you.

Anonymous said...

Sir
Can anyone suggest why there is an inequality in terms of NPA and ante date seniority amongst professionals into Army. To my knowledge doctors get Non practicing allowance and Engineers get technical pay with ante date seniority of one year but JAG deptt officers are not treated at par with no NPA OR ante date seniority. Advocates also surrender their license to practice but no such benefit. What will be the recourse or was there any such representation earlier which was dined on some basis.

Anonymous said...

Sirs,
I wonder why MNS officers and other registered allied healthcare professionals in Defence Services are not entitled for nonpracticing allowance(NPA) similar to military physicians, surgeons, dentists etc. Historically allied healthcare professionals have not been paid NPA. There seems to be some disparity in this regard. It is time to change.This has been overlookd by the pay commission.