"Shape up or Ship Out is our Mantra, Chairman Sixth Pay Commission Justice B N Srikrishna "
Q. What terms of reference were provided to the Sixth Pay Commission?
A. Our terms of reference were to focus on good governance as also to ensure the bureaucracy can be spruced up to provide cutting edge administration. We would be interested in seeing how these qualities can be achieved in the day-to-day administration of the country. Our objective is to effect rationalization of existing structures and work out a pay package that will promote efficiency and productivity.
Q. What is the methodology being used by your team?
A. We believe performance should be incentivised. While we are not depressing pay or giving negative performance incentives, the approach of this Commission is that most of the growth in emoluments should come in form of performance related incentives that are over and above the normal pay. The underlying idea is that good performances must also carry pecuniary reward. Any growth in the compensation should come on account of better productivity. All future growth should be attributable only to better end results with non-performers being denied any growth. Shape up or Ship Out is our mantra. We are presently working out the parameters on how such a policy can be implemented.
Q. This will obviously cause a lot of heart burn?
A. Rewarding performers will inspire employees to perform better which can only result in better delivery for the common man. Only non-performers will be unhappy with such a dispensation. With the right incentives, the bureaucracy can be enthused to give ever improving results. The question to be asked is why a private company provides results whereas this is not the case within the government. We keep talking about making India a super power with growth rates exceeding nine per cent. To bring this about, every aspect of the nation needs to gear up to achieve these results. We cannot have a BMW engine attached to a khatara gadi. I’m an optimist. I believe ki yah kyoon nahi ho sakta hai.
Q. A performance mantra for the central government employees is bound to impact the state government employees also?
A.This is bound to have a ripple effect on state governments also. The State governments should also benefit in terms of better delivery as they cannot give, give, give all the time without expecting better performance. What this will translate into will be more discipline, more conscientiousness and extreme accountability from their employees. The employee must be able to account for every rupee that the government spends.
Q. Is the Sixth Pay Commission going to advocate a hire and fire policy for government employees?
A. The terms of appointment of existing employees cannot be changed to their disadvantage. What the Government can do is to adopt a contractual approach for hiring of government employees for specific jobs at certain levels. It is a logical corollary for ensuring better performance that needs to be looked at. The spirit of competitiveness in the world of trade and commerce must be introduced in governance.
Q. How will contract jobs work for defence service officers?
A. I am not suggesting all government servant jobs should be made contractual. I believe that many posts can be identified for contractual appointment, especially at a higher level or those requiring special skills. It does not imply that majority of posts would be on contract but that for some top level posts above a certain level Government should have the choice of the best talent available.
Q. How much more will the recommendations of the pay commission cost the exchequer? The public are fed up of government servants being paid more and more for non-performing?
A. The successive Pay Commissions have increased salaries of the employees. We believe that every rupee being paid to central government employees is coming out of taxes being paid for by the common man. Each time they received a pay hike, the taxes go up accordingly. Every time a small section of society is placated, the man-on-the street (who pays for this) is going to get upset. Hence, any increase should result in better delivery to the common man. We are working towards achieving this end. We are also trying to ensure that the additional burden on the government is well within its means. We are also well aware of the fact that Central employee salary hikes are bound to have a spiraling effect on state governments who will also be forced to increase salaries even though some of them are already (financially) in a bad shape and are facing deficits. The impact of our recommendation on State governments is also included in our Terms of Reference.
Q. Most of their money is spent on paying salaries?
A. The exact proportion would vary from State to State. As per the information available with us, out of 20 State following the Central pay scales, 14 States are in a comfortable fiscal position. If the citizen gets every rupees worth, we are working towards an ideal government.
Q. Where are the states going to raise the money from?
A. These recommendations are not binding on the states. Infact, these recommendations are not binding on the central government – it is within their discretion to accept or reject. Pressure from the unions forced the government to further enhance salaries beyond what had even been recommended by the Fifth Pay Commission. That is one of the main reasons why states like Kerala and Maharashtra went in the red. Maharashtra has just recently managed to come out of its deficit.
Q. Are government pay scales going to be made at par with private companies?
A. There is the general expectation that government pay scales be brought at par with salaries in the private sector. It will not possible to match private sector salaries. Boys coming out of school are getting salaries of over Rs one lakh per month and more. We have to look into this whole issue to see how much parity we can achieve.
Q. There is a strong rumour that salaries of government secretaries going to be made Rs one crore and more?
A. (laughs) I don’t think too much credence should be given to rumours. All sections are demanding a substantial increase (in salaries).
Q. Has the Finance Ministry instructed you to work within the framework of the budget or will your exercise end up being open-ended?
A. We have to keep the financial implications of our recommendations in mind. What is the comfort level of the Finance Ministry going to be ? Can they afford our recommendations or not. There is no point in recommending an increase of Rs 50 when all they can afford is Rs ten.
Q. You must be facing pressure from all quarters to increase salaries. How are you coping?
A. There is no doubt that everybody wants a larger slice of the cake – the question of course is just how much more can be given. I’m working with a team of efficient people who are doing most of the work. I guide them wherever it is necessary in that sense it is not very different from judicial work. Wherever there are conflicting interests, I step in to try and hold the balance.
Q. By when do you expect to make these recommendations?
A.The Sixth Pay Commission recommendations should be out by next March-April.
Q .If government employees have contractual jobs, how will they receive pension benefits?
A. Persons on contract would be entitled to a higher compensation package and not to pension for the contractual period. Those employed prior to 1/1/2004 would continue to get pension. Those employed on or after 1/1/2004 will continue to be governed by the New Pension Scheme.
Q. India is a complex country with different political interests. Do you see your recommendations actually being put into action?
A. My job ends the day I submit the report. I am looking at the whole situation objectively and on that basis will make my recommendations. How the government puts these recommendations into action is not a concern of mine.
This is a welcome move to make the govt machinery more efficient, but overhauling the entire machinery may cause backlash. When wage is the matter in any work place, making govt salaries incompetent to private will make the machinery more inefficient. 'Brain Drain Problem' should be kept in mind to make our valuable scientists and technocrats more satisfied.
ReplyDeleteI am unable to understand - performance based salary.
ReplyDeleteWhen policy makers are - Beuracrates , Seniors etc.
How a sub ordinate, junior person perform. His task is to full fill his duty. (Is is possible a lower position person sharp mind can reach on top). Our system is caste based, religion , regionalism where you can see even interview are fake, no report / reason. No person can ask recruitment department. They are having no responsibility. I want to ask , if in a government department, for a computer professional if u r not providing computer, then where will he perform. That I have see, seniors are saying if ypu learn more, you may left the department.
What a joke?
Having grand ideas is one thing and implementing those ideas are another.
ReplyDeleteThe sixth pay commission is confronted with several contradictory ideas and the need to cut through the jungle of ideas.
First of all there was this issue of Brain drain. All the best brains were supposedly going out of the country.
They were the best brains among those who could afford to go out of country for better wages.This does not necessarily imply that those who were left out in the cold were not the best.
With liberalization , corporates are earning handsome profits and are paying handsome salaries to higher echelons of management( Remember the lower grades or the cutting edge of the Companies are still paid less than what is being paid to Govt employees in similar categories(Gr C and D)
If corporate salaries could reverse the brain drain, then it follows that if we want best and motivated brains to come to Government, we have to give then salaries which is better than the corporates. else Govt.we would get only second Grade material and expectation from performance should also be second grade.
For Last ten years or so, since the opening of market market economy , there is marked improvement in the performance of the Government. If Tax collection is taken as criteria , one can easily see the quantum jump. In fact this year's tax collection is far above the target .This is true of Income tax and indirect taxes also.
Justice Srikrishna at one place in the interview mentions that with implementation of pay commission , tax rates are going up. This could not have been farther from the truth. In fact general level of taxes have gone down drastically,. Indirect taxes have also been reduced mostly due to WTO obligations. But Tax collections have increased. The coverage has increased. There are more number of tax payers and still more to be brought under the tax net. This general buoyancy in the tax could not have come about without general improvement in economy.
Therefor the correlation with rising tax rates and increased salary is entirely misplaced and contrary to the established facts.
In this country of 1 billion people, there are hardly 5 crores who pay taxes. All Government Employees pay taxes and they can not evade it even if they want to. So naturally coverage has to be increased to realize better taxes.
The contribution of Fifth Pay commission towards fiscal deficit of Government of India was 1 % out of 3.5% total fiscal deficit.
In a study in USA, it was concluded that Federal Government Employees are paid 50% more compensation in a similar job than their counterparts in private sector. In India the situation is just opposite.
If we talk about theories of motivation then social status is one of the parameters. If Government job invites such ridicule then the employees would not be motivated enough to join. or perform when they see that corporates give better status and salary.
Chanakya said that if you employ underpaid staff to protect your treasuries, your treasuries are bound to get depleted due to corruption.
So first Govt has to ensure better pay structure before talking of anything else.
With the advent of market economy, we have by and large forgotten the socialist ideas of economic equality. There is no point telling that Government servant's pay should be considered in the light of common wages. If such an ideas were still acceptable, then perhaps there should be a cap on the salaries of Corporates. After all Cabinet Secretary manages the affairs of a Sovereign Country , the policies of which would affect the corporate performance of not one but of all companies. Should he not be better compensated. This is more important to take unbiased decisions.More or less similar position is obtained in other cases.
Now , parity with State services scales is a misnomer. In fact, state salary structure and means of finances are entirely different and in no way can be compared to that of the Center.Even the import of the decisions taken by federal employees have much wider scope than those of states. If such a parity is accepted then states would have to worry about pay structures of local organizations , local bodies and state corporations which would demand similar dispensation. The hierarchical structure of Center-state and local bodies are well established. However in open market economy, state Govt can decide to pay on equal work equal pay basis.
Whenever pay commission reports are accepted by the Govt , it should be seen in the totality of its recommendations. Fifth Pay commission had also recommended 30% cut in staff strength. this was conveniently ignored. Outsourcing of certain common tasks were to be done. Not much progress has been made in this direction. Streamlining of procedures had to be undertaken. One would do well to read manual of office procedure and hundreds of rules and regulations governing each and every conceivable situations and umpteen exemptions, thereof , and one would realize the dire necessity of streamlining the whole process. Like Computerized reservation systems , most of the routine process of the Government could be computerized and interface could be made for citizens. This by itself cut inherent delays and corruption to a large extent.
However one can not completely do away with petty corruption, it is the large scale corruptions which dent the image of state, causes financial loss and generally demoralizes the honest officers.
Lastly, regarding performance based salary, one sees day in day out, that hardworking and honest officers.employees are marginalized, their opinions are not taken into account, inconvenient officers are put to cold storage, what prevents Govt to patronize convenient officers in any performance based system. The question of how much objectivity can one expect in the current system where checks and balances are in favor of convenient officers alone. Few are caught, but mostly because of insider squabbling.
So the task before the Commission is very challenging and will have long term impact on the future of the Country. One can not wish away the Government structure, at least not in the foreseeable future. So Country has a right to expect a comprehensive report which would rejuvenate the creaking and demoralized Government machinery.
Dear Friend ( Just Above One)-
ReplyDeleteYou are saying private sector is better performer, unable to understand. Private sector is performing due to currency margin. In US, UK a sweeper can earn one lack rupees monthly, it is due to currency and labour margin. Why indian labour try to migrate to Europen, US countries. Since our system is not good. Beuracrates think like that they are king. I say why corrupt beuracrates, minister's penalize to improve service quality.
Our system is caste based, religion based, regionalism, corruption etc. Interview system is totally fake to judge performance. Hire & Fire approach should be apply, if a senior person unable to qualify minimum criteria of written exm.
U can see case of UP what happens in interview based selection. In government system there is no transparency. Nobody have right to ask. Writtem exm marks and intreview marks should be shown to maintain transparency. Videography in interview must be there.
Root of corruption are senior person, they should be penalize if they found.
At the age of IT, performance criteria can be possible through -
A junior person can sent his suggestion/ recommendatios through email and CC to his ministers, secratories in a anonymous way and a code should be generated, if his seniors found to be wrong. They should be demoted.
LET ALL OF US HOPE THAT JUSTICE SHALL BE EXTENDED TO ALL BY THE PANEL HEADED BY JUSTICE SRIKRISHNA.
ReplyDeletePERFORMANCE RELATED PAY IS DEFINITELY A WELCOME MOVE. HOWEVER,THE PERFORMANCE OF AN EMPLOYEE IS DIRECTLY PROPORTIONAL TO THE PAY,PERKS,CAREER PROSPECTS AVAILABLE,WORKING CONDITIONS ETC.HENCE A LEVEL PLAYING FIELD IS NECESSARY TO INTRODUCE THE SCHEME, AS THERE ARE LOT OF DISTURBANCES IN THE HORIZONTAL AND VERTICAL RELATIVITIES IN SIMILAR CADRES WITHIN CENTRAL GOVERNMENT ITSELF ALSO. MANY OF THE TIMES DIFFERENTIAL TREATMENTS BEING DONE TO DIFFERENT MINISTRIES AND CADRES.
CENTRAL GOVERNMENT EMPLOYEES ARE LOSERS COMPARED TO NOT ONLY THE PSU EMPLOYEES BUT MANY OF THE STATE GOVERNMENT EMPLOYEES WHILE CONSIDERING THEIR PERKS,PAYS, FACILITIES,COMPETITIVENESS IN APPOINTMENT,ALL INDIA TRANSFER LIABILITIES,WORKING CONDITIONS ETC.
UNPRECEDENTED AND ILLOGICAL DOWNSIZING DONE AND THE POOR CAREER PROSPECTS AND PAY IN THE PAST IN CENTRAL GOVERNMENT HAD ADVERSELY AFFECTED THE QUALITY AND QUANTITY OF THE SERVICES IN SOME OF THE ORGANISATIONS.
SOME TIMES, EVEN THE DESIGNATIONS ALSO PLAYS A VITAL ROLE IN PAY SCALES AND DISPARITY IN SIMILARLY PLACED CENTRAL AND STATE GOVERNMENTS CADRES.FOR EXAMPLE; IN CENTRAL GOVERNMENT,THE SUB DIVISIONAL ENGINEERS ARE GENERALLY DESIGNATED AS ASSISTANT ENGINEER,WHICH IS AN INFERIOR DESIGNATION AS GIVEN TO THE SUBORDINATE SECTION-IN-CHARGES OF STATE GOVERNMENTS LIKE KERALA,ANDHRAPRADESH ETC;.BY VIRTUE OF THIS,A SENIOR GRADE ENGINEER OF CENTRAL GOVERNMENT IS DRAWING LESSER AND INFERIOR SALARY THAN THEIR STATE GOVERNMENT COUNTERPARTS ETC.EVEN IN IMPLEMENTATION OF SIMILAR PACKAGES.
WHEN INDIA IS SHINING,LET THE WHOLE OF NATION BE SHINED,DONT FORGET THE ROLE OF EMLOYEES IN ITS SHINING.
-BABU O VARGHESE,MUMBAI
Govt. employees are baggers, they are not choosers. So be happy with what you get. All pay commision,s are a scams. There is no justification to the fact that it takes 2-3 years to decides to deside about a very small part of govt function i.e wages. Now this system itself is so slow and incompetent including the pay commission itselt (he himself is true that in Govt setup only non performers are there), nothing good will happen to nation. Nation will continue to get demotivated govt machinery. The view expressed by Justice B N Srikrishna confirm this possible gedradation.
ReplyDeleteThe performance linked pay/incentive is a very good concept. But the appraisal or assessment of the employee's performance should not be done by his immediate superior in the same organization. This would lead to chamchagiri and also manipulation by superiors leading to demotivation of lower cadre. Incidences of junior level employees being forced to corruption by superior officers are common in Govt organizations. Periodic assessments could be conducted by a neutral third party organization in a transparent manner. The system of a CR should be done away with.
ReplyDeleteLets all take a lil break..from the never ending discussion and arguments and wish ...Manisha...A Very happy Dipawali!!!
ReplyDeleteAll adiministrative employees' salary should be increased to save them from dying circumstances in metros like Delhi,Mumbai, Chennai as the Software salary has increased the House Rent like anything in these metros.House Rent has been increased 100% over last one year.
ReplyDeleteGod (here Govt.) save the Administrative employees.
Dear all
ReplyDeletethere are news in some newspaper about the delaying tactics of Govt. In implementing the recomendation of 6th PC.It says that last time the NDA Govt. lost the election after merging the DA with basic and this time the GOvt will implement only after the election.
wishing you all happy Diwali!!!!belated
sanjay
it is a indeed a difficult task in hand's of justice BN Srikrishna. The nation is going through a economic boom and the demand by the central govt employees for a pay hike might pull down the growth of the nation. but SADLY it's true; that today even a first class gazetted officer finds difficult to maintain his living standards adequately. There were times when the govt jobs were the most sought after and considered very lucrative, but now govt jobs are seen as a MUJBURI.
ReplyDeletewith globalisation world economist are in for a tough time, as in india where MNC's earn their profits in DOLLARS and pay their employees in rupees; they straitaway increase their profit margins to add on many zero's to it. despite this they pay extremely less to their employees, and SURPRISINGLY these mere salaries by MNC's are by any standard much much higher then the what a govt can pay to it's employees.
the performance based salary is fine but with the present working system in the government it may not result into better efficiency in the public services. the commission should recommend some basic changes in the government system. inhancement in the salary at par with the private may be inevitable if we really expact some basic changes in the working. the hike in salary will also encourage the fance sitters (85% employees) not to opt for the currupt parctices. any incentive scheme should be based on certain predified objecive paramenters or (quantified) performances. the incentive should not be based on the duration of working hours or based on the assement of the superiors but it should be result based. commission should suggest some schemes (e.g. get cash in leu of vehicles) to avoide widespread misuse of public properties.
ReplyDelete