7th Central Pay Commission: Terms of Reference

Ministry Of Finance

(Department of Expenditure)

RESOLUTION

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 comprising the following:

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 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.

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 finalised.

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RATAN P. WATAL, Secy

Dearness Relief to Punjab Government Pensioners w e f July 2013

No.1/29/98-3FPPC/384

GOVERNMENT OF PUNJAB

DEPARTMENT OF FINANCE

(FINANCE PENSION POLICY AND COORDINATION BRANCH)

                                                      Dated Chandigarh, the 25February, 2014

To    

All Heads of Departments,

Commissioners of Divisions,

Registrar, Punjab and Haryana High Court,

District and Session Judges and

All Deputy Commissioners in the State.

Subject: -: Grant of Instalment of Dearness Relief to the Pensioners/Family Pensioners due from 1st July, 2013.

***

Sir/Madam,

I am directed to refer to this Department Letter No.1/29/98-3FPPC/1539, dated the 31 October, 2013 and letter No.1/29/98-3FPPC/1597 dated 8th November, 2013 on the subject cited above and to say that the Governor of Punjab is pleased to decide that the Dearness Relief due to the Punjab Government pensioners/family pensioners/extraordinary pensioners etc. with effect from 1 July, 2013 shall be payable to them from the l " February, 2014 onwards. Thus the Dearness Relief payable to pensioners/family pensioners/extraordinary pensioners etc shall stand increased from the existing rate of 80% to 90% of basic pension.

2. The Dearness Relief at the enhanced rate as shown above will be paid with the pension w.e.f. 1st February, 2014 by crediting the same in the respective bank accounts of the concerned Pensioners/Family Pensioners. The decision for the payment of arrears of Dearness Relief for the period from 01.07.2013 to 31.01.2014 will be taken in due course. It has been further decided that arrears of D.A. for the period from 1.01.2013 to 30.06.2013 due at the rate of 8% of basic pension will be paid in cash immediately by crediting the same in the respective bank accounts of the concerned Pensioners/Family Pensioners.

3. Other provisions governing grant of Dearness Relief to Pensioners etc. such as regulation of Dearness Relief during employment/re-employment and regulation of Dearness Relief where more than one pension is drawn etc. will remain unchanged.

4. On the analogy of decision taken by the Government of India it has been decided to dispense with the issue of ready reckoner along with the Dearness Relief Orders. It will now be the responsibility of the Pension Disbursing Authority, including the nationalized banks etc. to calculate the quantum of Dearness Relief payable in each individual case.

5 All District Treasury Officers/Treasury Officers and Public Sector Banks will make payment of Dearness Relief to Pensioners/Family Pensioners etc. on the basis of these orders.

6. The expenditure involved will be debited to the Head "2071- Pension and Other Retirement Benefits".

7. The liability in respect of pre .1st November, 1966 service of the pensioners and their family pensioners shall be divisible amongst the successor States of the erstwhile State of Punjab i.e. Punjab; Haryana, Himachal Pradesh and Union Territory, Chandigarh, in terms of the 14th Schedule of Punjab Reorganization Act, 1966.

Yours faithfully,

Signed 25/2/14

(Usha Sehgal)

Joint Secretary Finance

100% D A to Central Government Employees w e f January, 2014

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.
Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 100 percent of the basic with effect from 01.01.2014. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs. 11074.80 crore per annum and Rs. 12920.60 crore in the financial year 2014-15 ( i.e. for a period of 14 months from January 2014 to February 2015).