Wednesday, September 19, 2007

Sixth Pay Commission may derail economy

Sixth Pay Commission may derail economy ( http://in.rediff.com/money/2006/feb/09mspec.htm )

'The Fifth Pay Commission (set up in 1994) recommendations resulted in a Rs 530 billion payout by the government. The next (sixth) pay commission would effectively wind up Indian sovereignty.


Pay Comission - administrative system/mechanism that the Government of India set up in 1956 to determine the salaries of government employees.

1st pay comission - set up in 1956

Fifth Pay Commission - central government declared salary and allowances hikes for its approximately 3.3 million employees, and insisted that the state governments too revise the pay of their employees as per the Commission's recommendations

Result - Before the Fifth Pay Commission recommendations came into effect, the central government's wage bill (including pension dues of Rs 50.94 billion) stood at Rs 218.85 billion in 1996-1997.

Some of recommendations by Fifth Pay Commission's included cut down the government workforce by 30 per cent; abolishing 350,000 vacant posts and reducing the number of pay scales from 51 to 34, none of which were implemented.

Sixth Pay Commission - Communist leaders and trade unions have been demanding the setting up of such a commission

The committee, headed by Cabinet Secretary B K Chaturvedi, turned down the request for constituting the Sixth Pay Commission. The committee said the Centre might not be able to bear the additional burden and the states were just recovering from the impact of the Fifth Pay Commission, whose recommendations were implemented in 1997.

What People are saying -
1 ) i have been working in railways for the past six years.i am getting gross salary of around 10,000/-pm. do you think with this salary a family can fulfill his basic needs(food,dress,house)? it is true nowadays buying a house in chennai or other cities is not possible for goverment employees. i like to say the pay commision should have to view the issue in such manner.

2) There are many contraversies regarding pay commission & payments to central Govt employees. You Please think youself what a pity figure a engineer/ scientist/ Doctor/PG is getting after 20 yrs of cream period of his service ........... 25-30thousand p.m. In other sectors a personnel of similar qualification normally gets... Private...............60,000-150,000p.m. Public................50-80 Thousands Airlines 80-150 " Consultacies 80-140 " Pvt Coaching 80-150 " Pvt Business 100-250 " Politics No limit In other words U my say that today semi-skilled labourer is much better than average govt employees. I will request to pay commission to remove the disparity in emoluments in govt,autonomus and private sectors so that they can run their family with at par status. Also suitable measures should be taken to improve the workin-environment so that they may give maximum output they can.

To Know more visit - http://in.rediff.com/money/2006/feb/09mspec.htm

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