Seventh Pay Commission recommendation has not only brought in cheers for the government employees, but has also disheartened professionals working in the private sector. Over 70 per cent private sector employees regretted working in the private sector after 7th pay panel report was made public, which said that central employees will bag 23.55 per cent salary hike, revealed a TimesJobs.com survey. The survey covered over 700 professionals working in the private sector from across the country.
In the private sector, employees earn their increments based on their individual performance and contributions to the business. The frustration levels are so high that over 70 per cent respondents categorically stated that they wanted to opt out of their corporate jobs, according to the survey.
“This considerable hike is going to put a lot more discretionary income in the hands of central government employees and will definitely lead to increased spending. But the discontent caused in the private sector by this performance-indiscriminate hike to central government employees is palpable. And India Inc. employers are having to face the brunt of this dissatisfaction with lowered motivation and performance levels,” says Vivek Madhukar, COO, TimesJobs.com.
Seventh Pay Commission has recommended to the government a 23.55 per cent increase in government employees and pensioners’ salary, allowances and pension along with a virtual one-rank-one-pension (OROP) for civilians, involving an additional outgo of a whopping Rs 1.02 lakh crore a year.
According to the survey, a large majority (68 per cent) felt that this hike was “unfair”. Another 47 per cent respondents believe the raise has no linkage to employee performance while 30 per cent feel the massive hike will eventually widen the public and private sector income disparity.
Another 23 per cent respondents felt that since the private sector is a bigger employment generator, granting such a hike to central employees is unfair to them, reveals the TimesJobs.com survey.
The survey had representation from employees from across sectors and experience levels. Though their locations and work areas were different, they echoed the same sentiment of regretting working in the private sector in view of the hike offered to staffers in the central government.
While the disappointment with private sector pay scales was high across experience levels, entry-level employees were the most disappointed.