Report of the Seventh Central Pay Commission

Report of the
Seventh Central Pay Commission

MINISTRY OF FINANCE
(Department of Expenditure)
RESOLUTION
New Delhi, the 28th February, 2014

No.1/1/2013-E.III(A).—The Government of India have decided to appoint the Seventh Central Pay Commission
comprising of 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 the regulatory bodies (excluding the RBI) set up under the 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 the principles that
should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as the
retirement benefits of the personnel belonging to the Defence Forces, having regard to the historical and
traditional parities, with due emphasis on the 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 the complex challenges of modern administration and
the 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, inter-alia, 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 the 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 may consider 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 that State Governments, Service Associations and others concerned will extend to the Commission their fullest
cooperation and assistance.
4. The Commission will have its 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 finalized.
RATAN P. WATAL, Secy.


MINISTRY OF FINANCE
(Department of Expenditure)
RESOLUTION
New Delhi, the 8th September, 2015
No. 1/1/2013-E. III(A).—The Government of India have decided that the Para 5 of this Ministry’s Resolution
No. 1/1/2013-E.III(A) dated 28.2.2014 shall be modified as under :—
“The Commission will make its recommendations by 31st December, 2015. It may consider, if necessary,
sending reports on any of the matters as and when the recommendations are finalized.”
 RATAN P. WATAL, Finance Secy.

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