Notification of IFSCA(Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members) Amendment Ruels 2025

## Report on Amendment to IFSCA Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members Rules **1. Executive Summary:** This report analyzes the amendment to the International Financial Services Centres Authority (IFSCA) Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members Rules, 2020, as notified on April 28, 2025. The core purpose of this amendment is to revise the consolidated salary structure for the Chairperson and Members of the IFSCA and address potential pension deduction concerns for retired government officers appointed to these positions. The key findings indicate an increase in the consolidated salaries and a provision to eliminate pension deductions for retired government officers, effective from January 1, 2024. **2. Introduction:** This report aims to provide an informative overview of the amendment to the IFSCA Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members Rules, 2020, based on the official gazette notification published on April 28, 2025. The analysis will focus on the specific changes introduced by the amendment and their potential impact. **3. Policy Overview:** * **Original Policy:** International Financial Services Centres Authority Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members Rules, 2020. * **Core Objective(s):** To define and regulate the salary, allowances, and other terms and conditions of service for the Chairperson and Members of the IFSCA. (Inferred from the title). **4. Background and Rationale:** The amendment appears to address the need to revise the compensation structure for the Chairperson and Members of the IFSCA. This could be due to factors such as attracting qualified individuals, reflecting changes in economic conditions, or aligning compensation with similar roles in other organizations. The insertion of the proviso regarding pension deductions for retired government officers suggests an intention to encourage experienced individuals from the government sector to serve in the IFSCA without facing financial disincentives related to their pensions. The retrospective effect from January 1, 2024, indicates that the decision to revise the salaries was made earlier, and this amendment formalizes the change. **5. Key Provisions / Changes:** This amendment specifically changes *rule 7* in the International Financial Services Centres Authority Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members Rules, 2020. The following changes are introduced: * **Subrule 1 Amendment:** The consolidated salary for the position covered by this subrule is increased from Rs. 4,50,000 to Rs. 5,62,500. The *effect* of this change is a substantial increase in the remuneration for this role. * **Subrule 2 Amendment:** The consolidated salary for the position covered by this subrule is increased from Rs. 4,00,000 to Rs. 5,00,000. The *effect* of this change is an increase in the remuneration for this role. * **New Provisos:** Two new provisos are added *after* subrule 2: * **Pension Deduction:** For retired Government officers appointed as Chairperson or whole-time Members, there will be no deduction of pension from the consolidated salary. The *effect* is to make the positions more attractive to qualified retired government officers, as they will receive their full pension in addition to the consolidated salary. * **Effective Date:** The Chairperson and whole-time Member are entitled to the revised salary with effect from January 1, 2024. This provides *retroactive* payment of the increased salary. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * The Chairperson and Members of the IFSCA (both current and future). * Retired Government officers who are potential candidates for Chairperson or Member positions. * The Department of Economic Affairs, Ministry of Finance, responsible for implementing the rules. * The International Financial Services Centres Authority itself. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Department of Economic Affairs, Ministry of Finance, is responsible for implementing the amendment. The IFSCA SURBHI JAIN, Jt. Secy is the contact person. * **Timeline:** The amendment came into force on the date of its publication in the Official Gazette (April 28, 2025), with salary adjustments effective from January 1, 2024. * **Procedure:** No specific procedures are detailed in this excerpt beyond the official gazette notification. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Attracting Talent:** Enhanced compensation packages, particularly the elimination of pension deductions, are expected to attract highly qualified individuals to serve as Chairperson and Members of the IFSCA. * **Improved Morale and Retention:** The increased salaries may improve the morale and retention of existing Chairperson and Members. * **Fair Compensation:** The revision is likely intended to provide fair and competitive compensation, reflecting the responsibilities and expertise required for these positions. * **Smooth Transition:** By making changes effective from Jan 1, 2024, smooth transition and application is guaranteed. **9. Conclusion:** The amendment to the IFSCA Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members Rules, 2020 represents a significant update to the compensation structure for key leadership positions within the IFSCA. The increased salaries and elimination of pension deductions for retired government officers are intended to attract qualified individuals, improve morale, and ensure fair compensation. The amendment, effective from January 1, 2024, underscores the government's commitment to the IFSCA and its crucial role in the financial services sector.

Key Entities Referenced