Proposing a 40% hike in salaries, the Sixth Pay Commission has taken a leaf out of the private sector book to introduce performance-related incentives but has rejected the argument for parity between public and private sector salaries. It has cited studies and discussions to argue that several factors, including prestige, job-security, pension, allowances and perks, outweigh the salary gap.

The commission received a large number of representations, particularly from Group A officers, highlighting disparities between salaries in the government and those in the private sector and arguing that this led to reduced attractiveness of the Government as a career option and a decline in the quality of intake.

Extensive discussions with heads of training institutions, the panel’s report says, found that this contention had no sound basis “as the compensation package has not made any significant impact on quality of intake which has remained consistent over the years.”

The commission’s key conclusions:

• According to a study by the Xavier Labour Relations Institute, commissioned by the Pay Panel, compensation provided by the Government is higher at Group C and D levels, marginally high for Group B employees and only substantially higher for Group A officers in the Government. The study also revealed that “merely comparing salaries without taking into account the total package of allowances and benefits available within the government, especially the value of pension and the value of job security provided, cannot be undermined since they form major components of the total package.”

• The Government provides “unparalleled variety and job content,” along with a much wider canvas of operations than the private sector. “The prestige involved in working for the Government and the opportunity of making a contribution to national policy or its implementation” are other aspects which add an unquantifiable value to Government jobs.

... contd.