The Terms of Reference of the Commission shall be as follows:-

1. To suggest modifications, if found necessary, for the pay and allowances of:

a) Posts under Government Service, including Part-time Contingent Service and Casual Sweepers

b) Posts under Education institutions of the Government, Aided Schools and Colleges and also such institutions covered by Direct Payment Scheme, including employees in Part-time posts and Casual Sweepers and excluding those posts covered by UGC/AICTE schemes of Scales of Pay and also posts for which, Central Scale of Pay have already been allowed such as Teaching Staff in Medical Colleges and Judicial Officers etc. and

c) Posts under Local Bodies and Universities except those covered by AICTE/UGC/Central Schemes.

2. To examine the present structure of Pay and Allowances and Other Emoluments and Service conditions including, promotional avenues and fringe benefits available to the above categories of employees and suggest changes, if any required.

3. The commission shall also examine the scope of introducing non-cadre promotion to various categories of both gazetted and non-gazetted posts who continue in the entry cadres for long periods of service.

4. To examine and suggest changes, if any, to the benefits available to Service Pensioners.

5. To consider the scope of extending the benefits which are available to Central Government employees at present, but not available to the State Government employees.

6. To look into the cases of anomalies in the last Pay Revision specifically referred to the commission by Government and suggest remedial measures.

7. To examine the present Civil Service set up as a whole and make suggestions to increase efficiency, social accountability and making Civil Service more people friendly.

8. To consider the need for a gender sensitive service structure especially multifaceted issues faced by women employees and make suggestions for remedial measures.

9. To review the existing rules and procedures for fixation of pay and suggest methods for simplification thereof with a view to reduce cost and time spent on such exercises.

10. To asses and indicate the additional financial commitment on account of implementation of its recommendations, including the methodology/ assumptions adopted for such assessment.