Friday, November 20, 2015

Pay Commission is out: Not Pleasing for the Employees

The 7th Pay Commission is out and it has submitted its recommendations to the Finance Minister yesterday. That is the operative part, but the recommendations are pretty luke warm and the salaries recommended do not have the competitive edge vis a vis the corporate world.

The commission has recommended a pay hike of about 23%, and for retired personnel it is 24%. This is not on the present gross emoluments, but on the basic pay. In that respect the increase in real terms may just be about 10%. This is a small increase and the commission ( perhaps under pressure from the government) as watered down its recommendations.

The pay commission is in fact an anomaly and I wonder why it has to be there. It is a colossal waste of time and money. A better system would be to have a constitutional body that works automatically and adjusts the pay of the employees in real time. In any case a period of 10 years , when each pay commission is ordered is too long and in fact means a decade passes before revision. Hence there is a need to stop this charade of a pay commission and est up a rolling commission to revise salary every year. To say this is a administrative nightmare is a lot of bullshit as in the modern  age a revision can be done in minutes with the latest software available.

The Central government servants wont be happy and I wonder if at some stage a strike or go slow is not the result. For this the central government would be responsible.

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