Pay Packages of Group 'A' Officers and above - Suggestions for Sixth Central Pay Commission

Some of the Questions for the Government Policy Makers: --

Who are the people who join Indian Civil Services?

--During the last five years, how many students from IITs and IIMs have joined Indian Civil Services?

--Have government noticed that earlier the brain drain was happening outside India mostly to US, UK, Australia, New Zealand and other western European countries but now most of the talented people are joining MNCs even within India?

--Why these people are not joining the earlier most sought after service i.e. Indian Civil Services?

--Do you know what is the difference between the pay package that a new ICS appointee gets and an MNC appointee gets?

There is a big hue and cry about the appointment of the Sixth Central Pay Commission. The corporate India is scared that, the pay revision for the ‘Baboos’ will derail the economy altogether. On the other hand the government employees complain that the present salary and other emoluments are not sufficient for leading a decent life, especially in the post liberalization era of high pay packets.

On a realistic analysis, it can be seen that, the main problem in the Government service is that compensation at the senior levels is highly uncompetitive. In the Group 'A' level, where the officials have to take important decisions, which affects the welfare of the general public, and implement important schemes and programs, for the development, and growth of the nation, there is indeed a need to recruit the best available talent. The civil service in India has always been manned by the cream of the talent. The recruitment by UPSC is known to be the toughest in the world, and the training provided is considered as among the best. Even in spite of that there are complaints from many corners that the bureaucracy in the country is not efficient and is slow paced.

Are They Inefficient?

The actual problem in fact is, not with the quality of manpower, but with the system and procedure which is unnecessarily complicated, and which can only be addressed by administrative reforms. It is not correct to blame the officers or question their efficiency or integrity, for delays or hurdles in delivering, which in fact is mainly due to the administrative system, which needs to be thoroughly modified. Of course there is a question of attitude also, which can be improved by steps including betterment of working conditions. In fact Government officers themselves are the most affected victims of the system. A good example is the Pay Commission itself. Pay revisions for the government employees are due once in ten years. The Fifth Pay Commission had stated that the Sixth Commission be appointed by 2003 so that new pay scales could be made effective from 1.1.2006. The Sixth Commission was set up in October 2006 only, ie, ten months later to the date on which the revision should have actually been implemented! The Commission has been given a time frame of 18 months to submit their report. The Fifth Commission has taken 33 months to submit their report. Even if the present commission submits its report within time, it takes several months for the Government to take a decision. Who is to be blamed here, - the employees, who are at the receiving end?

It is to be noted that, not too long ago, the salaries in the private sector was not as attractive as they are now. Many of the serving government officers have joined the service when they were having other options also. They should not be punished nor made to regret for having chosen to become a public servant than serving some ‘only profit’ motivated private enterprises. The Govt. official also have to live, bring up and educate his children among those who are employed in the private sector or well paid public sector organisations. At present for even a Group ‘A’ officer it would be difficult to afford to send his child, to an IIM or any other premier institute, which is sponsored or established by the Government itself, whereas those who being less competent were not able to make it to the Civil Services, and hence joined the public or private sector, would be able to provide quality education for their children.

Regarding other benefits such as promotional avenues also, the private sector, has emerged as much more attractive. In the private sector (especially in software, banking, Telecommunications, Insurance etc.) a qualified employee gets promoted to the next level in about three years, whereas in the government the same takes many more years. This will definitely demoralize the presently serving officers, and would fail to attract the cream of talent to join also. In fact there has been only a reduction in the facilities provided to the Govt. employees. Suspension of LTC a few years back is an example. For the new entrants to the service, even the pension, which was once considered as an attractive factor in the Govt., has been made contributory, resulting in an actual decrease of 10% in the net salary. Even their savings through the Provident Fund attracts 1.5% less interest, than the private sector. (The govt. incurs huge loss to provide for this higher interest to the private sector). Moreover, the salary of the Govt. employee is as such subject to income tax, whereas in the private sector, they split the salaries in to components and reimbursements so as to avoid income tax to the maximum.

The bureaucracy being adequately paid is, in fact, in the interest and for the welfare of the large sections of the community, and promotes equity and social justice, for the reasons including the following:

a) It is the Govt. machinery, which has to formulate and implement schemes and programs for the welfare and benefit of the larger community. Hence it is necessary that the Govt. machinery be manned with people with ability and quality.

b) Govt. provides and ensures employment opportunities for the talented among the under privileged sections including SC/ST, OBC, physically handicapped, etc. The well-paid jobs in the private sector, by and large are accessible to the convent / public school educated elite layer of the society. There are no prescribed criteria for the recruitment in to the private sector employment. So the Govt. sector remains the only avenue available for the children of the ordinary man, to come up in life by one’s own effort. If salaries in the Govt. are not made at par with that of the private sector, it only adds to widen the gap between the elite and the poor sections of the society.

c) Being underpaid would demoralize the public servant, which in turn would slow down the process of development.

d) An adequately paid civil service would be less or not corrupt, which again is beneficial for the community. The present scenario:

A Group ‘A’ officer at the entry level, at present is appointed on a basic pay of Rs. 8000/ per month. Apart from that he gets paid dearness pay (DP), Dearness allowance (DA), Traveling Allowance (TA), House Rent Allowance (HRA) and City Compensatory Allowance (CCA) if applicable. The sum total of the salary and all these components per annum will be around Rs.200,000/- for an officer posted in a major city, which is meager, by any standard, and which is less than the entry level pay of an employee of average caliber in the private sector.

CCA at the highest rate today is Rs. 300/- only, which provides an amount of less than Rs.10/- per day for a family in cities including Mumbai, Delhi, and Bangalore, where the cost of living is very high compared to other towns and villages. The CCA for different cities will have to be increased at least six fold of what it is today. There is also a need for changing the basis of classification of cities. City living cost is directly related to factors including the general income of the residents, price of petroleum products in that city etc. A very good example is Bangalore, the Software capital of India, where very high salaries are paid to people in the software and related fields, which constitutes a large section of the residents. Naturally the pay in other private sector areas also is on the higher side in that city. Apart from that, the price of petroleum products in the city is also among the highest in the country, resulting in a corresponding increase in the cost of living. But very recently only the Government increased CCA in that city to Rs. 300.

HRA even at the highest rate of 30% of the present pay scales are not enough for a decent accommodation. Again if Bangalore is taken as an example, the HRA provided for, is only 15%. In fact the average actual house rent in that city is much higher than that of some other cities where HRA is 30%. A direct recruited Group ‘A’ officer in Bangalore will get an HRA of Rs. 1800/- per month (15% of basic pay + DP) only, with which it is not possible even to get a one room accommodation with the least minimum facilities.

The TA paid to the Group ‘A’ officers is only Rs.800 per month. If the officer is residing within 1 km from the office he is not entitled for TA at all. The present rate was fixed a decade ago when average cost of petrol in the country was less than Rs. 20 per litre whereas now the same is more than Rs.50. The amount then was sufficient for buying more than 40 litres of petrol whereas the same will not be now enough for transportation to office by ordinary bus, in cities like Bangalore. TA necessarily needs to be linked with cost of petrol.

Another example is the medical benefits provided under the Central Government Health Scheme (CGHS) on medical insurance basis on payment of a monthly subscription. You have to undergo a long course of torture under the present system if you are to avail the facilities. The long queue in the CGHS dispensary which then refers to a government hospital to a specialist. After much of visits to a government specialist, the hassles of various medical tests, getting the dates for the reports of such tests, final diagnosis which invariably takes lot of time and the time by which final treatment starts is anybody’s guess.

Attractive Pay Needed at Group ‘A’ Level

If the central civil service is to remain efficient, there is need to provide very good remuneration and working condition for the officials at the Group ‘A’ level which shall be at par with the private sector. Another factor to be considered in devising a reasonable remuneration package for Govt. officers is the pay structure in public sector organizations like ONGC, Reserve Bank, Nationalized and public sector Banks, SEBI, and the oil companies. It is a fact that the selections to these organizations are easier compared to selection by UPSC. Most of the officers of these organizations have joined them on their failure to get through the civil service and other UPSC examinations. There is need to make at least the Group ‘A’ services, if not higher, at least at par with the pay and other emoluments provided by the best of such organizations. Even a 100% increase on the present gross salary would not be at par with the private sector and would fail to attract the best talent. However considering all other aspects including the paying capacity of the Government a 100% increase along with other facilities for Group ‘A’, officers can be termed as just and reasonable. A minimum and reasonable increment of 10% of Basic pay per year is to be provided defining also the number of years to be normally served in that scale on the expiry of which the employee will have to be, if not promoted to the next higher position, at least entitled to draw pay at the next higher scale. For a Group ‘A’ officer the span of tenure to be served in the entry level should not be made more than four years.Apart from that all Group ‘A’ officials should be made entitled for:

1. Reimbursement of cost of petrol (or any other fuel) at specified eligible quantity, in lieu of payment of TA component in the salary. Even nationalized and public sector banks provide this to their officers At the entry level the officer should be eligible for cost of 50 liters as applicable in the city of his posting.

2. Air travel eligibility in economy class on official and LTC tour. At present a central government officer posted in south will have to spend six days in train to attend a one-day conference at New Delhi.

3. Rent free BSNL land and mobile phones, Lap top computers and Internet connection. This is especially important as Group ‘A’ officers are supposed to be on duty round the clock.

4. Medical facilities to include consultation in recognized private hospitals.

5. Entitlement to stay in good quality hotels on tour. The condition is pathetic at present. Hotels can be specially recognized in each place for this purpose on contractual rates.

6. At present like all other employees, Group ‘A’ officers also are entitled for LTC to hometown, with family, only once in two year block. Group ‘A’ officers are liable to be transferred to any place in India. Hence Group ‘A’ officers may be provided this facility once every year.

7. The government needs to purchase/lease housing for Group ‘A’ officers.

8. Other further incentives to match (to the minimum level at least) those provided by private sector. Some suggestions:

a) Entertainment allowance.
b) Facility to travel abroad to any one of the specified countries (as can be arranged as special packages each year in association with national air lines) or on any luxury train such as ‘Palace on Wheels’ in lieu of one ‘LTC to anywhere in India’ in the entire career subject to minimum specified years of service, and other conditions.

Comparison with State Governments pay

The central government service has always been and should always be above all other Government or local body services. People with much more competence only are able to get through the recruitment process in all levels of the central service, when compared to state or other such services This difference will always reflect on the pay structure also. Moreover, all important and key positions in the state administration are manned by officers of central services such as IAS, IPS, IFS, who also are the beneficiaries of the central pay revision. However more avenues may be provided for qualified employees with sufficient service, from the state services for deputation (and absorption also) into Central services.

Another point to be considered is that, unlike the state government and other employees, the central Govt. employees are liable to be transferred and posted at any where in the country. This causes them much difficulty financially and in other ways. The studies of their children are most affected, and for reasons related to that, quiet often the employee will have to stay apart from family again causing much expenses as he has to provide means for two households, apart from personal difficulties and emotional issues.

Special Provisions for Professionals

Scientists, Doctors, Engineers, Lawyers, CAs, and other professionals wherever such professional qualifications with previous experience are prerequisite for applying for the post should be paid a special allowance similar to Non Practicing Allowance, now paid to doctors only. Otherwise it will be difficult to retain or attract talented professionals to Government service.

Special Incentives To Promote Social Welfare

The Government should set an example by itself as a model employer by providing special incentives to its employees, to promote social welfare, family planning, communal harmony and national integration.

Issues for Consideration of Sixth Central Pay Commission

I have come to know now about this unique and excellent platform called ‘sarkaribaboo.blogspot.com' where govt. employees can share their views. I think this is a very good and unique initiative which should have been taken some years back. But better late than never. My hearty congratulations to the innovator.

Good News is that 6th Pay Commission is expected to submit its report to the Government by the end of this year. The Pay commission has been considering the structure of pay, allowances, pension, death-cum-retirement gratuity, family pension and other terminal or recurring benefits etc. including payment of bonus, introducing Productivity Linked Incentive Scheme in place of the existing ad hoc bonus scheme in various Departments.

If you talk of problems - there are heaps of problems. My learned friend Mr. Sudesh Negi has aptly sketched the pitiable, wretched and pathetic plight of the govt. employees with regard to pay & allowances, medical treatment etc. One can write "Granthas" on the problems of Govt. employees, but I would like to mention a few of them.

There is an utmost urgency for a motivational plan for all the govt. employees which should, inter-alia, include time bound promotions/ financial upgradation/ incentives etc to motivate the employees for better and better performance. Recently, I came to know that in Central Sectt. Stenographer’s Cadre, there are stenographers who, even after putting in 18-20 long years of service as stenographer are still a stenographer. Same is the case with other clerical staff in Central Sectt. Of course, there is ACP - a financial upgradation after completing 12 years of service in a particular scale– but it does not have any motivating effect. ACP is merely an eye wash – as this is just a financial upgradation and is not considered for anything else except financial upgradation. Shouldn’t there be a time bound promotion scheme. Despite working for say about 30-40 years, a Group ‘D’ employee in Govt. of India remains a Group D employee – both in terms of designation and pay & allowances & facilities. The 6th Pay Commission might think it appropriate to consider this important aspect.

I am going to touch upon a forgotton topic – i.e. about the admissibility of House Rent Allowance (HRA) to working couples - who are both in govt. offices. If you have been allotted a Govt. accommodation, both of you would have to forego your HRA irrespective of the fact that you both are entitled for the govt. accommodation. In another probability, if only one of the two is entitled for govt. accommodation and both are in govt offices; even then both the employees have to lose their HRA. To my mind it defies any logic. If both of them have to lose their HRA, they should be entitled either for two accommodations or only one accommodation and should get one persons’ HRA, as is the case with other employees, one of whom is working in govt. office and other in public sector.

The other point is about CGHS facilities being provided to the govt. employees. Why don’t the govt. thinks in terms of Mediclaim sort of an insurance plan for Govt employees and their wards? I think paying a lumpsum amount monthly or annually as medical allowance would not be a bad idea at all as the services of CGHS are not up to the mark.

If you talk of other allowances viz OTA, Conveyance etc. we are still sticking to the “once upon a time” theme. The rate of overtime allowance for govt. employees is only Rs. 12.50 per hour for a long-2 time, which was revised after a long time from Rs. 3.45 per hour. I don’t know when the time will come to revise the rates.

Payment of Transport Allowance (TA) is one of the issues which should be considered by the Pay commission. At present, more TA is given to those who are also entitled for officials cars. Obviously, they should get more TA as per their entitlements, but the lower rung officials should not be overlooked. Is paying just Rs. 100/- as TA to a poorly paid baboo justified?

There are so many issues pertaining to Central government employees, which need to be looked into, but one thing is certain that they are a frustrated lot - Be it medical facilities, TA, OTA, Bonus, salary - everything has a cap/ condition over it. We may hope 6th Pay commission might ease up the position for sarkari baboos.

--Jagdish C. Bist

A Counter to ERC Recommendations

Now a days there is talk of ERC recommendations being implemented very strictly. Under these recommendations posts vacant for more than a year or so will be abolished. Further a ban on recruitment on compassionate basis is in force, new recruitments in certain categories have been put on hold. But is the government focussing only on the posts that should be abolished? Is it also paying attention to the fact many sectors of the country are grossly understaffed and there is a dire urgency to address this question.

A myth prevails that the government is overstaffed. In the present scenario when computerisation is in full swing in government offices, there is some truth in the myth. But this is true only in a partial sense. If we look at the law sector, law enforcement sector, health sector, education sector, rural sector, etc. we can feel the pinch of reality. All these sectors are grossly understaffed.

Law Sector: The long list of pending cases requiring adjudication sends one in a tizzy. Of course it can be contended that our legal system is to be blamed which takes recourse to lengthy processes like hearing, counter hearing, summons, etc. But with a sincere approach, these problems can be taken care of. In the first instance we are very much short of courts, judges, judicial staff, supporting staff in the courts. The cases that can be tried summarily should be tackled accordingly. But again, with the crying dearth of judicial staff/ supporting staff, courts, the problem is lingering and is bound to linger on. There is an urgent need for a massive recruitment drive in the judicial sector. With this the festering problem of social unrest can be taken care of. By international standards also we are far short of judges.

Law enforcement sector: Day in and day out we hear the problems of unrest in law enforcement agencies. This can be attributed to their overburdening and overpressing duties. Again the worsening law and order situation can at best be attributed to dire shortage of personnel which calls for urgent recruitment in this sector.

Health Sector: This is the least touched sector. But the fact is that even though Constitution enjoins the right to life and that too a life with dignity to all its citizens, the citizens of this country are left to fend for themselves and be at the mercy of big wigs in the matter of health. With the loosening of the grip by the government over its resources, particularly in land resources, we find the construction of malls, shopping centres, dupleix theatres and every other amenities for well offs. But the number in which these amenities are constructed far outweigh their actual need. To take an example, in South Delhi, two huge shopping malls are in full construction and besdies that, two big private hospitals and one five star hotel is there. By the way these amenities cater only the affluent classes and in no way serves the lower middle classes which forms the majority in the peripheral areas of the place. If only one big hospital of the size of Safdarjung could be built in the area, it would have taken care of the masses who have to rush to Safdarjung for every possible ailment. The shortage of hospitals, technicians, labs, modern machines, doctors, nurses, supporting staffs compels everyone to rush to Safdarjung hospital for treatment only adds to the already heavily burdened hospital. Secondly, the need for proper maintenance of the medical equipments needs immediate attention. This by itself requires massive recruitment drive. This is only a tip of an iceberg where the pinch of inadequate staff is felt. Think of the scenario in the whole country. The health sector is such a vital sector that it has the potential of absorbing a very large work force. With the advent of latest technology the avenues have only multiplied. But is any one listening to the call of time?

Education Sector: With the Supreme Court declaring Right to Education a fundamental right and the good intentions of the erstwhile regime this right was translated into reality with a government order giving it an executive validity. But in urban sectors, we find opening of public schools in every nook and corner. In a way the private sectors seems to be bent on implementing the government fiat for its own benefit and in the process making a big hole in the pocket of citizenry who have understood the importance of education. But there is still a large ground to be covered for the government. With the burgeoning population, there is a pressing need for more government schools, teachers, labs, equipments, etc. again which has a very large potential of absorbing a huge workforce.

Rural Sector: This sector though of vital importance was totally left out of the scheme of things of the government. Agriculture, animal husbandry, food processing, horticulture, floriculture, etc. all these are the components in ths sector which need to be pruned up drastically and the potential of absorbing workforce which it carries should be implemented with full vigour and right earnest.

A totally new sector has emerged in recent years. Though a very important sector in a welfare society, its importance could be realised only recently i.e. social sector.

Critics of government are partially right when they say that the state of governance is not going to improve even if all the sectors are adequately staffed. But then abolition of posts is not the panacea to the ills staring at our face. You don’t chop of your finger if it gets hurt and pains or bleeds. On the contrary you try to put bandage and prevent the bleeding.

It would be worthwhile if the government at the national level gives its attention to these vital sectors by carrying out a nation-wide survey with sincere intention of creating the huge workforce that the problem of unemployment which is staring at the face of the nation can be tackled. In sum, it can be said that the government should be wise enough to allocate proper funds and resources proportionate to the promise that each sector carries. Only then we can have a balanced workforce that can make a strong India.

-- Sudesh Negi

(You can give your comments on the above article in the link given below or you can email your views to sarkaribaboo@gmail.com)

Downsizing of Government Workforce - Recommendations of the Fifth Central Pay Commission and Expenditure Reforms Commission

Some of the Fifth Pay Commission's important recommendations included slashing the government workforce by 30 per cent; abolishing 350,000 vacant posts and reducing the number of pay scales from 51 to 34. The Commission also suggested that the grant of salary hikes to employees should be linked to issues of downsizing government staff, efficiency, and administrative reforms.

The then Finance Minister Yashwant Sinha in 1999, set up an Expenditure Reforms Commission to recommend ways to downsize government workforce in a systematic manner. 'The high rate of growth of non-developmental expenditure by government is a growing and critical source of concern. The most effective and lasting solution to this problem is to begin the process of downsizing the government,' Sinha had then noted, while setting up the Expenditure Reforms Commission.

The task before the Expenditure Reforms Commission was to recommend ways to reduce the roughly 4.2-million-strong central government staff, which would have then helped even state governments to downsize its 20 million employees.

So what were the Expenditure Reforms Commission's recommendations?

• A 10 per cent reduction in central government staff as on January 1, 2000 to be carried out by 2004-2005.
• A screening committee consisting of the secretary of the concerned ministry, a representative of the department of personnel and training, and a representative of the department of expenditure should be set up.
• This committee should prepare the annual direct recruitment plans for all cadres, with approval -- in respect of group 'A' posts -- being accorded by a committee consisting of the Cabinet secretary, concerned secretary, secretary (DOP&T) and secretary (expenditure).
• There should be a total ban on creation of new posts for two years.
• Staff declared surplus should be transferred to the Surplus Cell to be redesignated as the 'division of retraining and deployment,' which will pay their salary, retirement benefits, etc. In these centres, where the number of surplus staff is quite small, the present practice of the parent organisations making these payments may be continued.
• Surplus staff should be made eligible for a liberal voluntary retirement scheme (VRS) recommended by the Fifth Pay Commission, with the exception that commutation entitlements will be as at present and the ex gratia amount will be paid in monthly installments covering a five-year period.
• Those who do not opt for VRS and are not redeployed within one year will be discharged from service.

The Expenditure Reforms Commission further said that computerisation, office automation, creation of paperless offices and changes in office systems and file management would considerably reduce the government's staff strength.

Moreover, the Commission also put before the government a 10-year manpower plan. 'If we have to plan for a 30 per cent across-the-board cut, within a time frame of ten years, it would amount to 3 per cent reduction in manpower levels every year. As this is the normal attrition rate due to retirements, deaths, resignations etc, a total freeze on fresh recruitment alone can achieve the 30 per cent reduction within ten years,' the Expenditure Reforms Commission said.

Thus, the core of the Expenditure Reforms Commission recommendations was that there should be a complete freeze on all new recruitments and no vacant posts should be filled up.
Currently, 3.5 lakh (350,000) posts lie vacant in the central government alone.

Do you agree with the downsizing of the government workforce? What do you think, the fit and competent government servants have right to remain in government service and those who are not fit and competent, should take VRS or quit government service or should be sent to Surplus Cell? Give your comments on the link given below or mail post to sarkaribaboo@gmail.com.

Sixth Central Pay Commission

The Government of India, after taking into account the changing scenario in terms of structure of emoluments and service conditions of Government employees in several respects since the implementation of Fifth Central Pay Commission’s report in 1997, have appointed the Sixth Central Pay Commission on October 5, 2006 under the Chairmanship of Mr. Justice B.N. Srikrishna with Prof. Ravindra Dholakia and Mr. J.S. Mathur as its Members and Smt. Sushama Nath as Member-Secretary.

The Pay Commission has been given the tasks of:

1. Examining the structure of pay, allowances and other facilities/benefits whether in cash or in kind to the government employees,

2. To transform the Central Government Organisations into modern, professional and citizen-friendly entities that are dedicated to the service of the people.

3. To work out a comprehensive pay package for the government employees that is suitable linked to promoting efficiency, productivity and economy through rationalization of structures, organizations, systems and processes within the government, with a view leveraging economy, accountability, responsibility, transparency, assimilation of technology and discipline.

4. To harmonize the functioning of the Central Government organizations with the demands of the emerging global economic scenario. This would also take in account, among other relevant factors, the totality of benefits available to the employees, need of rationalization and simplification, thereof, the prevailing pay structure and retirement benefits available under the central PSUs, the economic conditions in the country, the need to observe fiscal prudence in the management of the economy, the resources of the central government and the demands thereon on account of economic and social development, defence, national security and the global economic scenario.

5. To examine the principles which should govern the structure of pension, death-cum-retirement gratuity, family pension and other terminal or recurring benefits having financial implications to the present and former Central Government employees appointed before January 1, 2004.

6. To make recommendations with respect to the general principles, financial parameters and conditions which should govern payment of bonus and the desirability and feasibility of introducing Productivity Linked Incentive Scheme in place of the existing ad hoc bonus scheme in various Departments and to recommend specific formulae for determining the productivity index and other related parameters.

7. To examine desirability and the need to sanction any interim relief till the time the recommendations of the Commission are made and accepted by the Government.

The Commission will make its recommendations within 18 months of the date of its constitution i.e. before April 4, 2008.

The Commission is holding meetings and hearings with the officers, unions and associations.

You can post us your views on the working of the Commission, your expectations from the Sixth Central Pay Commission and suggestions for the Sixth Central Pay Commission.Write to us at sarkaribaboo@gmail.com or post your comments on this blog. If you want to publish your views on this blog, write to us.