Can govt salaries attract good talent, 7th pay panel asks

The panel has also sought views on the payment of bonus, which is one of its terms of reference.

Written by Surabhi | New Delhi | Updated: May 1, 2014 9:29 am
Additionally, it has asked for comments on the pay structure of sectoral regulators. (AP) Additionally, it has asked for comments on the pay structure of sectoral regulators. (AP)

Amid a widening gap between the salaries offered by private sector companies and the government pay-scales, the Seventh Pay Commission has set the ball rolling on the process of implementing a new pay package for over 50 lakh central government employees by sending a missive to all central ministries eliciting views on whether the current remuneration packages are sufficient to attract talent to the prestigious civil services.

In a four page questionnaire, the pay panel wants to know how attractive is the annual increment, ways to reward good performance and the changes introduced by the Sixth Pay Commission such as pay bands and pay grades.

“A questionnaire seeking the considered views of stakeholders is enclosed… so as to enable the Commission to take them into account as part of its examination of the issues that it is mandated to address,” said the missive by the pay panel, requesting all replies by May 10.]

The panel has also sought comments on determining the basis for pay fixation at the highest and lowest levels, variable pay, the effectiveness of the annual increment on July 1, retirement benefits under the New Pension Scheme as well as experiences of government departments with outsourcing of jobs.

Significantly, the pay panel has a dedicated section on issues relating to the defence services seeking views on how to evolve parity between salaries of civil and defence personnel. It is also expected to review benefits to war widows and disabled soldiers.

The pay panel that was, one of the last pre-poll bonanzas announced by the UPA was approved by the Cabinet on February 28 and is expected to submit its recommendations within 18 months.

Headed by former Supreme Court judge Ashok Kumar Mathur, it was asked to finalise its recommendations while “keeping in view the economic conditions in the country” and fiscal prudence.

The Sixth Pay Commission was set up in 2006,and gave its report after 18 months in March 2008, costing the Exchequer an additional Rs 26,035 crore in the first year and is considered one of the main reasons why the government missed its fiscal deficit target.

Accordingly, the Seventh Pay Commission that is looking into revising salaries of over 50 lakh central government employees and remuneration of 30 lakh pensioners has asked for ideas on how to address the rising expenditure on defence pensions.

It has also sought views on how to limit the impact of its report on state governments. “The recommendations of the Pay Commission are likely to lead to similar demands from employees of state governments…to what extent should their paying capacity in devising a reasonable remunerative package for Central Government employees,” said the questionnaire.

The panel has also sought views on the payment of bonus, which is one of its terms of reference. Additionally, it has asked for comments on the pay structure of sectoral regulators.

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  1. P
    Pawan Sharma
    Dec 4, 2014 at 9:28 am
    Girish ji for the person working in private sector without following any rule regulation and without and restriction, the work force in self employment like chai wala, paan wala and others shopkeepers earning in lakhs and not paying a single paisa as income tax, it easier to say that the government servant never work. Every government office is not like MCD, Jal Board or Income tax Department, s tax Department where I also face the same difficulty as the common people. I would like Girish ji to come and work even for a month in any of the Ministry only then he will come to know how the Government servant works
    1. G
      May 1, 2014 at 8:11 am
      How about linking pay and incentives with performance this time?Notoriously, government employees never work, get paid for it, and top it off with corrupt practices for additional income.
      1. S
        S K
        Jun 18, 2014 at 2:08 pm
        Fat pay packets for Government servants is not going to attract talent.We have seen this after 6th pay commission report came in to effect.While recommending a big hike in ry structure,the 7th Pay Commission must look in to its after shock in the back ground of our economic downturn. Big pay hike may benefit few but harm majority of our potion.
        1. S
          Aug 23, 2014 at 5:01 pm
          Govt emoyees should be given pay at per with the private corporate companies, then only govt can attract the best talents which will in turn will reflect in the upward development of the country. Pls never think that only private company employees wotk, if we stick to this atude then our country will never b a developed country. There are lakhs of govt employees who are working for the people of country, in social security sector, defence sector, education sector, healthcare sector, public service sector, if the govt does not pay them well how they can be able to give their best. Today also a govt employee have to admit his son or daughter in a low cost school as they can not wish for a good private school( if they are not corrupted). Govt employees can not afford d cost of a good private hospital treatment. If a govt employee after working for the w life can not afford the good education n good healthcare facility to his children n family which is d basic need , do you feel the talented young generation will come to serve d country. They wl never come. Now time to act and respect these govt employees n pay at per with the corporate companies, then only cortuption will get eliminated from the system.JAI HIND