8th Pay Commission to examine government-private sector pay and perks; employees suggest changes

The primary question that the 8th CPC has floated for inputs is: "How should the 8th CPC assess/evaluate relativity between pay & perquisites in Government and the public/private sector?"

It has also said: "Pay determination in organisations including Government, involves 'horizontal relativity' i.e. for analogous posts across domains/cadres being placed in the same level/scale & 'vertical relativity' i.e. on promotion, transition to a higher scale/band of pay. Relativity within different posts of the government has been broadly established over time. However, relativity/positioning between pay and perquisites in Government and the private sector is less established."

While this is not the first time a central pay commission will examine government-private sector pay and perks, employees and pensioners are expecting the 8th CPC to address this issue thoroughly and ensure government employees receive perks better than or at least at par with those offered in the private sector.

In the past, central pay commissions have observed that a direct comparison between the government and private sector compensation is neither entirely appropriate nor practicable, as the nature, objectives, and responsibilities of public service differ significantly from those in the private sector.

What are the changes suggested by employees?

"In view of these responsibilities and constraints, the pay structure of Central Government employees should ensure adequate and respectable compensation that is superior and commensurate with the responsibilities and accountability entrusted to them. Such an approach will help attract and retain capable individuals in public service, maintain morale and ensure efficient delivery of public services," the All India Federation of Defence Workers (AIFDW) told the 8th CPC.

The AIFDW argued that 8th CPC should evaluate the relativity between government and private sector compensation by recognising the unique character and obligations of public service.

"Unlike the private sector, Government employees are subject to strict conduct rules, transfer liabilities, limitations on collective bargaining, and greater scrutiny in discharge of their duties. They are also required to serve in remote, difficult and strategically important areas where private sector employment opportunities may not exist," it said.

"Sector-specific benchmarking may be adopted for serving employees; however, for pensioners, the principle of modified parity must be ensured. Pensioners of identical ranks must receive equitable treatment irrespective of date of retirement. Any improvement in pay scales must automatically reflect in pension revision to avoid discrimination between past and future retirees," the Railway Senior Citizens Welfare Society (RSCWS) told the 8th CPC.

The RSCWS also said that horizontal and vertical relativity within government services must be preserved to protect parity among retirees of analogous posts. Pensioners must not suffer erosion of status due to distortions in pay structuring.

The pensioners' body further said the following should be allowed by the 8th CPC:

• The spirit of Supreme Court Judgments of “Promotion thus not only covers advancement to higher position or rank but also implies advancement to a higher grade”

• 7th CPC recommendations of “when the employee receives a promotion or a nonfunctional financial upgrade, he/she progresses one level ahead on the horizontal range”

• 6th CPC’s “Grade pay being progressively higher for successive higher posts, the employees on promotion will get monetary benefit on promotion in the form of the increased grade pay apart from the benefit of one additional increment.”