What 7th pay commission recommend about Bonus Schemes and Performance Related Pay for central Govt Employees?

The Commission suggests the following modifications in the existing APAR system
so that it can used as another anchor for determining Performance Related Pay:

Alignment of Objectives: At present, the linkage between individual and organizationalperformance is not clearly aligned in the APAR. The current APAR focuses more on the individual’s performance compared to organizational performance. This results in a situation where individual officer can be rated excellent while the rating of the department could be lower. This is an anomaly which needs to be corrected. Conceptually, the Ministry’s Vision/Mission needs to be translated into a set of strategic objectives for each department and these objectives need to be cascaded by the Department Head to his subordinates and subsequently down the chain. Prioritizing Objectives, Assigning Success Indicators and their Weights: Objectives reflected in the APAR should be prioritized and assigned weights along with success indicators or Key Performance Indicators (KPIs). 

 The Commission feels that any Performance Related Pay (PRP) for Central Government employees should provide a credible framework to drive performance across ministries/departments. Rather than a new system design, the favoured approach should be an incremental adaptation which can operate within the existing framework of rules with minor changes that can enable smooth implementation and operationalization of PRP.
 In this backdrop, the Commission recommends introduction of the Performance Related Pay for all categories of Central Government employees, based on quality RFDs, reformed APARs and broad Guidelines, as enumerated above.
 The Commission also recommends that the PRP should subsume the existing Bonus schemes. The Commission notes that there could be a time lag in implementing the Performance Related Pay by different departments. Till such time, the existing Bonus Schemes should be reviewed and linked with increased profitability/productivity under well-defined financial parameters.

Tag: Bonus, Related, Recommendation, 7th pay commission 2016