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What is Terms of Reference?

Last Modified: February 27, 2023

What is Terms of Reference?

‘Terms of Reference’ – A key report with instructions given to the Committee or Group.

The Seventh Central Pay Commission was constituted and the government framed certain Terms of Reference for this Commission.

The salient features of the terms are to examine and review the existing pay structure and to recommend changes in the pay, allowances and other facilities as are desirable and feasible for civil employees as well as for the Defence Forces, having due regard to the historical and traditional parities.

In addition, it is to review the norms of bonus, keeping in view performance and productivity, as also examine the existing pension scheme and other retirement benefits.

The terms of reference enjoin that the recommendations should be made keeping in view the economic conditions and available resources of the country and also the likely impact on the State Governments.

The Terms of Reference also mandated the Commission to make the recommendations keeping the best global practices and their adaptability and relevance in Indian conditions.

A closer look at the terms of reference reveals, thus, that there are many newer elements which have broadened the remit of this Commission.

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