The Hindu Business Line : 6th pay panel terms notified

The Sixth Central Pay Commission will seek to work out a comprehensive pay package for a variety of Central Government employees, including those belonging to the All-India Services, Armed Forces, Union Territories as also officers and employees of the Indian Audit and Accounts Department, and transform Central Government organisations into modern, professional and citizen-friendly entities.

This was stated in an official order issued today to announce the constitution and terms of reference of the Sixth Central Pay Commission.

Besides, the Commission would attempt to harmonise the functioning of the central government organisations with the demands of the emerging global economic scenario.

The Commission would take into account, among other relevant factors, the totality of benefits available to the employees, need of rationalisation and simplification, the prevailing pay structure and retirement benefits available under Central PSUs, economic conditions in the country, the need to observe fiscal prudence in the management of the economy, resources of the Central Government, demands on account of economic and social development, Defence and national security and the global economic scenario.

It would also consider the impact on the finances of the States if the recommendations are adopted.

Further, the Commission would make recommendations on the general principles, financial parameters and conditions that should govern payment of bonus and the desirability and feasibility of introducing productivity-linked incentive scheme in place of the existing ad hoc bonus scheme in various Departments.

It would also recommend specific formulae for determining the productivity index and other related parameters.

The four-member Commission, which is chaired by Mr Justice B.N. Srikrishna, will make its recommendations within 18 months from the time it is constituted.

It may consider, if necessary, sending reports on any of the matters as and when the recommendations are finalised.