Tuesday, April 01, 2008

XLRI conducts study for Pay Commission

From The Hindu

Corporates pay lower salaries to peons, clerks: Pay Panel

New Delhi (PTI): Corporates are poor paymasters when it comes to rewarding lower level employees such as peons and clerks, says a study commissioned by the Sixth Pay Commission.

The government pays better salaries to the lower categories of employees than the corporate sector, pointed out a study conducted by XLRI, Jamshedpur, at the behest of the Pay Commission which has recently submitted its report to Finance Minister P Chidambaram suggesting revision of pay scales for the central government employees.

"During the presentation before the Commission, it emerged that...the compensation provided by the government is higher at Group C and D levels", the pay panel report said.

In case of middle level (Group B) employees, the report said the compensation package offered by the private sector is only "marginally" higher than what is provided by the government.

The real difference, however, is in case of the higher-category Group A officers, whose counterparts in the comparable posts in the private sector get "substantially higher" compensation, the report said.

Reacting to the demand of market-linked salaries put forth by various associations, the Pay Commission said, "The high starting salaries projected in the media and other reports are granted only to a minuscule number who are the best students of top-end management schools".

High salaries depend upon the demand for talent at that point of time and are not reflective of the industry average, the Commission said, adding "Such episodic events should not be used as the yardstick for comparison, as ultimately the higher salaries...get normalised over time."

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