1. NDA must end the pay commission politics

NDA must end the pay commission politics

Even the 7th Pay Commission members are convinced that hefty pay hikes for a large chunk of government employees are illogical, but the government is ready to go for the suggested hikes.

By: | New Delhi | Updated: November 21, 2015 12:53 PM
The need today is to bring in and promote efficiency and expertise in the government and weed out corruption and inefficiency the way prime minister Narendra Modi wants — the pay commission model has largely done the opposite. (PTI)

The need today is to bring in and promote efficiency and expertise in the government and weed out corruption and inefficiency the way prime minister Narendra Modi wants — the 7th pay commission model has largely done the opposite. (PTI)

pay commission politics Chairman of the 7th Central Pay Commission (SCPC), Justice AK Mathur has hit the nail on the head by suggesting the Centre should discontinue the practice of appointing pay commissions every 10 years to suggest salary revisions for its staff.

Why can’t the salary and pay hikes for the government employees also be on the lines of the private sector?

Constituting the central pay commission and implementing its recommendations has become more of a political issue than an exercise based on sound HR practices.

The UPA government appointed the SCPC on February 28, 2014, ahead of the Lok Sabha polls.

Implementing the hikes in salaries and pensions of the central government employees of the SCPC now will be a major burden on the government finances despite the fact that even those associated with the SCPC are convinced that the pay hikes for a large chunk of government employees are illogical.

But, the government has no other option than to go for the suggested hikes and pretend and project in public that it will have no major impact.

While it is true that the NDA government can’t do anything about correcting this situation now, it must initiate a debate on the need to end this pay commission politics and shifting to a framework for annual increment in salaries accommodating all the aspects including the consumer prices.

At present, the dearness allowance is increased to take care of the retail inflation and pay commission decides on the salary increases. Clearly, a 10-year exercise is not the right one from any angle.

The need today is to bring in and promote efficiency and expertise in the government and weed out corruption and inefficiency the way prime minister Narendra Modi wants — the pay commission model has largely done the opposite.

Though the SCPC has more or less limited its recommendations to the space that the government said it had to implement them, there is no doubt this is a pain in the neck for its finances, which will spread to the state governments also going ahead.

The SCPC has proposed an increase of 23.55% in the pay (salary and allowances) of central government employees and similar increase in pensions, which will become effective from January 1, 2016.

This would mean a projected payout burden of Rs 1.02 lakh crore in FY17, or 0.65% of GDP.

In effect, however, the cost would be much larger than this.  Should this be replicated again after 10 years?

Get latest news and updates on Auto Expo 2018, check breaking news on Budget 2018, like us on Facebook and follow us on Twitter.

  1. Y
    Yamanappa
    Nov 21, 2015 at 11:24 pm
    Govt should consute expert group and send them at ground level and consolidated the views and living stats of the employees. They should consolidated points raised by different organizations and recommend pay accordingly. As GREF or BRO is working with Indian Army in most of remote and inclement weather conditions but are not getting Pat and perks being far away from their home. Whereas less qualified person in any other Govt will get more pay than GREF or BRO employees. Govt should take suitable step.
    Reply
    1. E
      editor
      Nov 21, 2015 at 2:04 pm
      paid news..
      Reply
      1. K
        Krishna Gupta
        Nov 21, 2015 at 1:12 pm
        To attract talent and professionals in Govt.service decent pay is a must. Today most of talented young persons leave India and go out to study on scholarships or go out and get scholarships and settle abroad. Lot of them join Private sector after doing MBA and prefer working abroad with MNCs. If only left overs join Govt.Service how can we expect any improvement? In well administered countries like Singapore Govt.Employees get better pay than private sector. Also pay of Govt, servants today are less than pre Independence days in terms of purchasing power.
        Reply
        1. S
          S Sharma
          Nov 21, 2015 at 12:55 pm
          Lovely Suggestion Modi Sir, we must do it we waist precious resources in form of time and money of nation due to this. The Individuals are also beneed since they get it added every year. We must avoid this unnecessary stress and concentrate on better things which need attention
          Reply

          Go to Top