February 24th, 2009
By Our Correspondent
Feb. 23: In what has created a resentment among the officers of the Central and state services, the government of India has offered additional allowance of 25 per cent of basic salary as special allowance to the officers of All-India Services posted in Northeastern states. In this regard the ministry of personal, public grievances and pension has issued a separate notification on February 10 to the state governments of the region. The notification no 14017/4/2005-2005 AIS (II), signed by director (services) Harjot Kaur said, “The ministry has decided to grant special allowances to officers belonging to any cadre of All-India Services working in Northeastern states.
The allowance, known as special allowances, will be at the rate of 25 per cent of basic pay and in addition to other allowances payable to officers posted in Northeastern states.” If insiders are to be believed, there has been no recommendation of the Pay Commission in this regard or decision of the Cabinet. The letter written to all chief secretaries and finance department of the Northeastern states said that this notification has been issued after an effective concurrence of the department of expenditure, ministry of finance and will be made effective since the day the notification has been issued (February 10, 2009). The special incentive that has been given to IAS, IPS and IFS only has created resentment among the officers of other Central services and the state governments as well as they started questioning the relevance of this “special treatment”.
This has come close on the heels of alleged distortion of Cabinet decision in September last year on the Pay Commission report by the government in formulating certain pay scales for IAS and IFS officers. The exorbitant 25 per cent special allowance is also going to create a serious problem for the state governments which are yet to mobilise fund for its employees who are agitating for salary hike already given to Central government employees in the Sixth Pay Commission. Most of the Northeastern states have expressed their inability in implementing the Sixth Pay Commission of the Central government to its employees. The officers of other Central services posted in Assam and other Northeastern states have also expressed surprise that such important notification was issued “secretly” and not displayed on the sites of the ministry.
Resentment after pay hike
Showing posts with label Performance Based Salaries. Show all posts
Showing posts with label Performance Based Salaries. Show all posts
Wednesday, February 25, 2009
Wednesday, January 16, 2008
Sixth Pay Commission Economics
The limits of what Politicians can do, can the IAS deliver?
You have no doubt heard the well known dictum of Karl Clausewitz, the great Prussian strategist, that war is an extension of Politics by other means. As often as not, it is Politics by other means and the looming debate whether the Sixth Pay Commission will derail the economy! The debate seems to be more about Politics and Public Relations rather than economics.
National Economic stimulus, as one perceives is more about tax cuts or increased Government spending designed to accelerate and spur economic growth in agriculture, industry, infrastructure and job creation.
Will the bureaucratic pulls for increased salaries set back our economic growth? The pragmatic approach is to offset inflation and give real wages to all government employees and weigh/ reign in performance based pay. We must have in place a Performance Evaluation for the top echelon of our bureaucracy and pay salaries truly related to performance not on seniority basis. Downsizing and efficiency must be the vanguard principles of prudent economics.
Defence Statistics roughly
defence budget of Rs. 96,000 crores
salaries 25,000 crores
pension 14,000 crores (not included in the defence budget)
cost of a soldier (salary, training costs) Rs 20,000 a month
jawans on combat role 20 percent
two ESM (drawing pension) for every serving soldier
The Sixth Pay Commission can certainly do a lot for the Armed Forces. A decent hike in salary and pension (one rank one pension) with a lot of perks for Field Tenures. For Ex- Servicemen the need of the hour is professionally managed, fully functional pro- active Zilla, Rajya and Kendriya Sainik Boards which are truly dedicated to address the problems of ESM.
You have no doubt heard the well known dictum of Karl Clausewitz, the great Prussian strategist, that war is an extension of Politics by other means. As often as not, it is Politics by other means and the looming debate whether the Sixth Pay Commission will derail the economy! The debate seems to be more about Politics and Public Relations rather than economics.
National Economic stimulus, as one perceives is more about tax cuts or increased Government spending designed to accelerate and spur economic growth in agriculture, industry, infrastructure and job creation.
Will the bureaucratic pulls for increased salaries set back our economic growth? The pragmatic approach is to offset inflation and give real wages to all government employees and weigh/ reign in performance based pay. We must have in place a Performance Evaluation for the top echelon of our bureaucracy and pay salaries truly related to performance not on seniority basis. Downsizing and efficiency must be the vanguard principles of prudent economics.
Defence Statistics roughly
defence budget of Rs. 96,000 crores
salaries 25,000 crores
pension 14,000 crores (not included in the defence budget)
cost of a soldier (salary, training costs) Rs 20,000 a month
jawans on combat role 20 percent
two ESM (drawing pension) for every serving soldier
The Sixth Pay Commission can certainly do a lot for the Armed Forces. A decent hike in salary and pension (one rank one pension) with a lot of perks for Field Tenures. For Ex- Servicemen the need of the hour is professionally managed, fully functional pro- active Zilla, Rajya and Kendriya Sainik Boards which are truly dedicated to address the problems of ESM.
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