Sixth CPC Report:(iv) Pvt. Vs. Govt. Sector


There have been varied responses from the Government employees to the Report of the Sixth Central Pay Commission. There are very few reactions which express satisfaction. Majority of the employees all over the country seem to be unhappy with the recommendations and have termed the recommendations as insensitive and insufficient to their needs. The frustration seems to stem from the fact that the expectation of getting salaries “at par with the private sector “ have not been met as per their interpretation of the Report. What has been overlooked is that the Commission has made sincere efforts to meet this expectation. It has tried to balance the demand with the mandate given to it for transforming the Government workforce into a modern and efficient organization.  

The Commission Report says that it has attempted an in-depth study into working of the private sector and noted that the compensation structure in the private sector is quite different as compared to Government sector. Since the establishments in private sector primarily work for commercial purposes the employee‘s cost is compared to the business worth. Such comparison is not feasible in Government jobs obviously for the reason that the Government sector is primarily service oriented. Also the variation in range of salaries in private sector  is quite wide .

On comparison with Government sector it noted that the salaries can be said to be definitely better in private sector only in reference to jobs which can be compared to Group A services . However in that respect the prestige and challenge offered by the Government jobs is also quite high and the Government jobs also provide incentives by way of compensatory allowances, housing and transport facilities etc.. The biggest advantage offered by a Government job is the job security attached to it and the assured retirement benefits. Commission has attempted to make the retirement benefits more attractive.  It has thus attempted to harmonize the tangible and intangible benefits offered by the two sectors for achieving some element of parity. 

For tackling the demand of the Government employees for making the minimum salary in the range of Rs. 10000/- per month the Commission has followed a multi pronged approach. Firstly it worked out the minimum monthly requirements for the family of lowest paid employee It has based it’s calculations keeping in view recommendations of the 15th International Labour Conference . The expenses when calculated on a family size of three units which is the expected family size for a job entrant came out in range of Rs.5500/-per month.   

minimum-expenses.jpg

          (Source: table 2.2.1 Pg.53 Chapter 2 of Sixth CPC Report)

Thereafter the pay scales were fine tuned to make the minimum salary in the range of Rs. 6600/- in order to make the same approximate to the minimum needs of the lowest paid employees. Commission feels that the addition of HRA and other allowances would make it some where in range of Rs.10000/- as was demanded.  

However simultaneously it also had to ensure that the relief is not considered as a windfall gain for the employees. It has therefore suggested transformation of the lowest paid employees into multiskilled workers whose skill levels could justify the higher wages. The Commission has therefore recommended that the Group D employees be converted to Group C employees in those cases where they fulfill the qualifications prescribed for Group C posts.

This would ensure that they not only get higher wages but also handle higher responsibilities. The employees who do not possess the minimum qualifications should be trained for skill up gradation and subsequent transition to Group C posts. Recruitment to Group C posts is proposed to be stopped forthwith. 

Next post: Estimation of benefits in real terms

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12 thoughts on “Sixth CPC Report:(iv) Pvt. Vs. Govt. Sector

  1. in private sectors engineers gets pay package of 1000000–50000000 while we in Govt. jobs will get 250000–1000000 with less perks . engineers should be given atleast 25% of B.P.as technical allowance.And for fixation formula bp on 1-1-06 +74%of bp +grade pay.The same should be corrected as bp as on 1-1-06 +86%+40%hike.

    Thanks

  2. the existing pay scaleof 6500-200-10500 shall be fixed as 17000-700-31000
    & others pay scale may be changed on the same guide lines.
    Pay fixed as on 1-1-06 21613 next stage 21900
    1-10 06 22600
    1-10-07 23300
    1-10-08 24000
    ACP 20-10-08 26000

    Allowance (Delhi,A1 city)
    HRA 30–40 %
    CCA 4–6 %
    TA 8–12%
    DA 0,5,11,17.23%
    For ENGINEERS
    Planing allowance 4–6%
    Tech allowance 10–25%
    !t is suggested that the old pay structure will be better because old is gold& the new pay structure has so many anomalies e.g.

    1.pay as on 1-1-06 may please consider + Hike on mercy of—why 12%0f BP reduced+grade pay?
    2.grade pay is fixed for Bp range of 5000-10500 as 4200,why?e.g.
    BP 5000 4200-600=3600
    BP 10500 4200-1260=2940
    3 increment 80% 2.5%
    20% 3.5% perhaps/guess for Chamcha`s
    4. in promotion/Acp pay grade will be changed while new appontee will get more ,why?

  3. Sir,
    Please instruct me to fix the revised basic and grade pay whose existing basic was as under. My previous pay scale is 5500-175-9000.
    1. As on 01/01/2006 basic pay 6725
    On 01-1-2006 Pay Scale (Rs.5500-9000)

    Sir,
    As
    On account of merger of pre-revised pay scales of Rs.5000-8000, Rs.5500-9000 and Rs.6500-10500, some posts which presently constitute feeder and promotion grades will come to lie in an identical grade. The specific recommendations about some categories of these posts made by the Pay Commission are included Section II of Part B. As regards other posts, the posts in these three scales should be merged. In case it is not feasible to merge the posts in these pay scales on functional considerations, the posts in the scale of Rs.5000-8000 and Rs.5500-9000 should be merged, with the post in the scale of Rs.6500-10500 being upgraded to the next higher grade in pay band PB-2 i.e. to the grade pay of Rs.4600 corresponding to the pre-revised pay scale of Rs.7450-11500. In case a post already exists in the scale of Rs.7450-11500, the post being upgraded from the scale of Rs.6500-10500 should be merged with the post in the scale of Rs.7450-11500.

  4. Sir,
    Please instruct me to fix the revised basic and grade pay whose existing basic was as under. My previous pay scale is 5500-175-9000.
    1. As on 01/01/2006 basic pay 6725

    As VI cpc (REVISED PAY SCALES FOR CERTAIN COMMON CATEGORIES OF STAFF)

    WORKSHOP STAFF ( Tech) In Defence.

    On account of merger of pre-revised pay scales of Rs.5000-8000, Rs.5500-9000 and Rs.6500-10500, some posts which presently constitute feeder and promotion grades will come to lie in an identical grade. The specific recommendations about some categories of these posts made by the Pay Commission are included Section II of Part B. As regards other posts, the posts in these three scales should be merged. In case it is not feasible to merge the posts in these pay scales on functional considerations, the posts in the scale of Rs.5000-8000 and Rs.5500-9000 should be merged, with the post in the scale of Rs.6500-10500 being upgraded to the next higher grade in pay band PB-2 i.e. to the grade pay of Rs.4600 corresponding to the pre-revised pay scale of Rs.7450-11500. In case a post already exists in the scale of Rs.7450-11500, the post being upgraded from the scale of Rs.6500-10500 should be merged with the post in the scale of Rs.7450-11500.

  5. my present scale is 6500-10500 and it is upgraded to 7450-11500 corrospondence scale pb2-9300 grade pay 4600. kindly tell me how will be my gross pay in details at present.

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