Sep 30, 2015

7th pay Commission to have may surprises in its report

The Central Government employees are scheduled to get salary hikes on the basis of the recommendations by January 1, 2016. According to sources, the house rent allowance too would see an increase by 20 per cent. But the most significant recommendation is that 5 to 6 per cent of the annual increment would be performance-based.

There is also likely to be a provision of retiring underperforming employees by the age of 55 or 30 years of service, whichever is more. “The Commission has spoken to all stake-holders and the recommendations are ready. We are expecting to submit the report any time soon,” sources said.

Five to six per cent annual pay hike of Central Government employees is likely to be linked to tangible performance criterion. Under-performers are likely to be retired by 55 or 30 years of service, according to the Seventh Pay Commission report to be submitted soon.

Should there be any comparison/parity between pay scales and perquisites between Government and the private sector? If so, why? If not, why not? Is the biggest question here. It was asked by every Pay commission but considered only for the top level executives to retain in the Govt. sector. Govt. may be a success in retaining its top officials in Govt. sector but now it needs to retain the middle management in the Govt. sector, wherebrain drain ratio is going high, is the argument put forth.

The concept of variable pay has been introduced in Central Public Sector Enterprises by the Second Pay Revision Committee. In the case of the Government is there a merit in introducing a variable component of pay? Can such variable pay be linked to performance?

Experts feel, The integrity of such scheme will remain doubtful in Govt. sector; hence scope and practical aspects for true monitoring of performance of Govt. employee will remain doubtful.

Source: Indian Express