Much of the discussion on the Sixth Pay Commission (SPC)
recommendations has revolved around the quantum of the increase
proposed, estimated in the range of 20-50% including increases in
allowances. Some measures, based on the increase in government's wage
bill ('Pay Commission hike is only 13%', T T Ram Mohan, ET April 3)
have suggested that the increase is a lot lower. In general, the
complaint has been that SPC award does not address the issue of
government salaries being much lower than in the private sector.
It is true that going only by monetary compensation, government
salaries appear to be lower even after the SPC award, at least in the
senior government ranks. But this is not a meaningful comparison as
private sector compensation, as noted by the commission, is often a
measure of what the employee costs to the company. Since such a
measure includes the costs of non-monetary benefits, the actual
compensation in private sector is often a lot lower, particularly in
senior positions. In the case of the government, a similar adjustment
based on what an employee costs to the government would increase
salaries significantly. Pension and medical facilities, for instance,
are a big comfort for government employees.
These non-monetary benefits are largely the reason why despite
complaints, movement from the government to private sector has in
general not been significant. However, there are government sectors
where, even after adjusting for non-monetary benefits, the private
sector scores over the government. These are the sectors where the
government is either facing an exodus or is finding it difficult to
recruit. Military and paramilitary services are a case in point. The
SPC has rightly taken note of the special situations and recommended
generous salary corrections.
Take the case of central paramilitary forces, which the commission
acknowledges have arduous work conditions. The commission has,
therefore, recommended a pay scale jump for the entire constabulary of
central paramilitary forces. A constable, for instance, would now get
the pay scale of a head constable and a sub-inspector gets a pay scale
of an inspector. Allowances such as compensation in lieu of quarter,
family accommodation allowance, ration money allowance have either
been hiked or made available across the board.
The SPC has also given special attention to government staff which has
a direct interface with the public and is, therefore, instrumental in
quality of service delivery. These include staff such as nurses,
teachers and police. A staff nurse, for instance, would now get a pay
scale of Rs 7,450-11,500 and a grade pay of Rs 4,600 against a pay
scale of Rs 5,000-8,000 earlier. The increase is of the order of 50%.
Similarly, in order to attract better teaching talent and retain it in
the government sector, the commission has suggested good increments
for teachers. A primary school teacher in grade III, for example, goes
up to a pay scale of Rs 8,700-34,800 and a grade pay of Rs 4,200 from
a pay scale of Rs 6,500-10,500. This means teachers have got a jump of
two grades under the SPC.
Besides, in order to ensure better delivery of services, the
commission has also recommended a parity between field offices and the
secretariat. Earlier secretariat staff used to get higher salaries
even though it was field staff that was actually the interface with
the people and largely responsible for the delivery of services.
Clearly, the disaggregated picture is qualitatively a lot better. The
commission was, it appears, aware of the market realities. In general,
at lower ranks, government salaries are a lot higher than in the
private sector, for example those of unskilled Group D workshop staff.
Therefore, hikes are appropriately not too high. But wherever there is
competition from the private sector or the government needs to ensure
quality, the pay commission has recommended remedial measures.
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