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7th Pay Commission: Now, private sector employees want pay parity


New Delhi, Dec 11: Following the 7th Pay Commission report, there is a significant discontent among private sector employees, and employers are dealing with lowered motivation and performance levels, says a survey.

Nearly 48 lakh central government employees and 55 lakh pensioners will be befitted by the recommendations made by the pay commission. This has triggered a widespread cry among private sector employees for pay parity.

Private sector employees want hike

Discontent among private sector employees:

According to a survey conducted by TimesJobs.com, after central employees bag 23.55 per cent salary hike, more than 70 per cent private sector employees regret working in the private sector.

What has surveyor's data revealed?

The discontent caused in the private sector by this performance-indiscriminate hike to central government employees is palpable.

India Inc employers are having to face the brunt of this dissatisfaction with lowered motivation and performance levels.

(7th Pay Commission decoded: All you need to know about salary increment)

Hike was 'unfair':

A large majority of respondents (68 per cent) felt that this hike was "unfair".

Another 47 per cent respondents believe the raise has no linkage to employee performance while 30 per cent feel the massive hike will eventually widen the public and private sector income disparity.

Who all are most disheartened:

While the disappointment with private sector pay scales was high across experience levels, entry-level employees were the most disappointed. (Pay parity puts govt on back-foot; know why IAS, IPS officers are fighting)

About 80 per cent junior/entry-level employees said they regretted having taken up jobs in the private sector, reveals the survey.

Nearly 75 per cent middle and senior-level employees also shared similar sentiments.

"All (100 per cent) the professionals surveyed said private sector companies should increase minimum wages like the central government," the survey noted.

Private sector offers more room for career growth:

However, most private sector employees agreed that their jobs offered them more room for career growth.

Close to 80 per cent employees think private sector jobs score better over government jobs given the opportunities for growth and job change.

The survey covered over 700 professionals working in the private sector from across the country, who earn their increments based on their individual performance and contributions to the business.

7th Central Pay Commission recommendations:

The recommendations made by the 7th Central Pay Commission, headed by Justice A K Mathur, which submitted its report to Finance Minister Arun Jaitley are as follows:

  • 23.55 per cent increase in pay and allowances recommended
  • Recommendations to be implemented from January 1, 2016
  • Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh
  • The rate of annual increment retained at 3 per cent
  • 24 per cent hike in pensions
  • Ceiling of gratuity enhanced from Rs 10 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25% whenever DA rises by 50%

OneIndia News

(With inputs from agencies)

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