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Gazette Notification of Resolution containing constitution and terms of reference of 7th Central Pay Commission

Gazette Notification of Resolution containing constitution and terms of reference of 7th Central Pay Commission issued by Ministry of Finance Department of Expenditure on 28th Feb, 2014:-
Ministry Of Finance

(Department of Expenditure)


New Delhi, the 28th Febraury,2014

No.1/1/2013-E.III(A)— The Government of India have
decided to appoint the Seventh Central Pay Commission comprsing the fallowing

1.Chairman – Justice Shri Ashok kumar Mathur
2.Member – Shri Vivek Rae
3.Member – Dr. Rathin Roy
4.Secretary – Smt. Meena Agarwal
2.The terms of reference of the commission will be as
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
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
  • 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
  • h) To
    recommend the date of effect of its recommendations on all the above.
3.The Commission will devise its own procedure and may
appoint such advisors, Institutional Consultants and Experts, as it necessary
for any particular purpose. It may call for such information and take such
evidence, as it may consider necessary. Ministries and Departments of
Government of India shall furnish such information and documents and other
assistance as may be required by the commission. The government of India trusts
the State Governments, Service Associations and other concerned will extend to
the Commission their fullest cooperation and assistance
4.The Commission will have Headquarters in Delhi
5.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



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