Govt pay scales to still lag pvt sector

Govt pay scales to still lag pvt sector
PTI
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First Published: Thu, Aug 14 2008. 06 05 PM IST
Updated: Thu, Aug 14 2008. 06 05 PM IST
New Delhi: The average pay hike of 21% for over 50 lakh central government employees announced on 14 August notwithstanding, their median salary would still fall behind private sector by more than Rs1 lakh per annum.
The median salary for central government employees in India currently stands at Rs250,092 per annum, while the same for those working with private sector companies is Rs 408,605, according to the world’s largest online salary database firm PayScale.
After adoption of Sixth Pay Commission recommendations, which was approved by the government on Thursday, the salaries would rise by an average 21%, with retrospective effect from January 2006.
Taking into account this average hike, the median salary for central government employees would rise to Rs 302,611 per year — which would still leave a gap of over Rs1 lakh compared with that of the private sector companies.
However, the gap would decrease by close to Rs 50,000 per annum after the revised government pay scales.
But, a number of private sector companies tend to revise their pay scales after adoption of government pay commission reports, as has been the case in the past. This could again expand the gap between the salaries of private and public sector employees.
The minimum entry level salary of a government employee has also been increased to Rs7,000 per month, consequent to which the total emoluments of an employee at the lowest level would rise beyond Rs10,000 per month after including the allowances.
At the entry level, the average salary at private sector companies is already less than the government employees and the starter-level pay hike announced by the government would further expand the gap.
Besides, the government employees with less than one year of experience also gets a higher average salary than their counterparts with the private sector companies and the gap would increase even further after adoption of Sixth Pay Commission recommendations.
According to data compiled by Washington-based PayScale, the median salary for central government employees with up to one year of experience currently stands at Rs 212,424 per year in India, while the same for private sector companies is Rs 208,962.
It is at the medium and higher levels of experience, where the private sector employees mostly enjoy a huge salary advantage over the government employees.
The hiked salary would be given to the central government employees beginning next month and the arrears from January 2006 would be given in cash in two installments -- 40% this fiscal and 60% in 2009-10.
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First Published: Thu, Aug 14 2008. 06 05 PM IST