A Study for Comparing Salaries/ Emoluments in Government Sector vis--vis

Central Public Sector Undertakings/ Private Sector in India

Study Commissioned by 7th CPC Submitted by

Personnel & Industrial Relations Area Indian Institute of Management Ahmedabad

Highlights & Analysis By

K.V.RAMESH, Sr.JGS/IRTSA rameshirtsa@yahoo.co.in 9003149578

(Not necessarily view of IRTSA)

mailto:rameshirtsa@yahoo.co.in

7th CPC about Studies commissioned by it

In para 1.18 7th CPC mentioned that while finalising the levels of salaries, allowances and other perquisites of compensation structure, we have tried to take a holistic approach. We also commissioned three studies by expert bodies towards this end

PART - I

METHODS ADOPTED BY IIM

TO VALUE THE JOBS ON COMPARISON

PURPOSE OF IIM STUDY The purpose of the study is to provide comparative analysis

of salaries/emoluments in the government sector vis--vis CPSU / Private Sector in India.

Identify job families in the Government Sector and identified comparative job families in the CPSU and the Private Sector.

Based on job families, conduct comparative study of salary patterns.

Study the organizational/ environmental factors affecting pay levels.

Analysis of the compensation in government and its conceptual underpinnings.

JOB ROLES IDENTIFIED Nurses, physiotherapists, lab technicians, doctors (MBBS),

doctors (MD/MS), dieticians, OT assistants, radiographers.

Teachers (PRT), teachers (TGT), teachers (PGT), principals (HS), scientists, technical staff (railways), graduate engineers, foremen, draftsmen.

Account officers, store-keepers, cashiers.

Software developers, network engineers, system analysts, programmers, data entry operators.

Electricians, plumbers, welders, drivers.

Clerks, library staff, secretarial staff, publicity staff, photographers and cameramen, receptionists, gardeners, and general helpers.

Identification of CPSUs & Private Sector

CPSUs were identified, based on their classification and compared for similar job roles.

Maharatnas, Navratnas and Miniratnas were covered in the study. Private Sectors identified with 3 criteria 1) Size of the organisation/ group 2) Main and related businesses of the

organisations 3) Presence in different categories of cities

Job equivalence for comparisons

Jobs roles and job descriptions, rather than designations were looked into.

Main components for data collection 1. Fixed Pay (BP, DA, etc) 2. Variable Pay (PRP, Bonus, etc) 3. Allowances and Benefits (HRA, TA, other perks) 4. Employers Contribution (PF, Pension, Gratuity) 5. Non-Cash Benefits (not included for calculation) 6. Additional Earning Opportunities (not included)

Basic findings of IIM Study 1. In most of the roles, salaries across

Government and CPSUs are in similar range.

2. Government is paying higher salaries compared to the private sector, particularly in initial years for jobs at lower levels.

3. Salary in government is relatively lower compared to the private sector, particularly in later years, for some highly skilled jobs.

4. Private sector compensation system is more dynamic in nature compared to government and CPSUs

Relevant factors for determining level

5 relevant factors for determining level and components of salary are:

1. Career Progression 2. Potential learning on the job 3. Supply over demand in the labour market

(requirement of attracting top talent with excellent academic)

4. Performance and 5. Requirement of retaining key competencies.

Classifying Job Families in the Government Sector in India

Departments / Ministries have been grouped into seven syndicates 1. Agriculture & Rural Development 2. Human Development 3. Resource Management 4. Trade, Industry & Services 5. Infrastructure Management 6. Social Welfare

CPSUs covered in IIM study 1. Coal India Limited, 2. Indian Oil Corporation Limited, 3. National Thermal Power Corporation, 4. Steel Authority of India Limited, 5. Engineers India Limited, 6. National Buildings Construction Corporation

Limited, 7. Power Finance Corporation Limited, 8. Rashtriya Ispat Nigam Limited, 9. Cochin Shipyard Limited, and 10.State Trading Corporation of India Limited.

Private Sectors covered in IIM study

Companies belonging to large groups, large organisations and small and medium enterprises based on employee strength and financial data.

Hospitals, schools, manufacturing organisations, IT/ITES organisations, and service organisations.

Characteristics for Job evaluation Job Points model

Main Dimensions Sub-dimensions Expertise Explicit Knowledge, Tactic

Knowledge and Specialisation

Effort Physical Activity, Cognitive Processes, Affective Processes and Initiatives

Responsibility & Accountability

Influence, Positional impact, Discretionary power and Safety &Risk

Working Conditions Unavoidable hazards, Non conduciveness of job environment and Lack of Job prospects

For every sub-dimensions points have been computed for every jobs identified for salary comparsion.

Points for sample jobs taken by IIM

50 jobs in the area of Health, Education & Research, Engineering, IT and General are taken for comparison.

Job points are sorted in increasing order of job points for easy representation.

Job point incorporate multiple aspects. No single job can have all aspects. Maximum & Minimum points out of IIM Study a. Super speciality Doctor - Job points 55.9 b. Gardener Job points 8.1

Max. Points for Dimensions & Sub Dimensions

Expertise Max. Points

Efforts

Max. Points

Explicit Knowledge 18.6 Physical Activities 5.0

Tacit Knowledge 7.5 Cognitive Processes 7.4

Specialisation 5.0 Affective Processes 5.6

Initiatives 3.7

Sub total 31.1 Sub total 21.7

Responsibility & Accountability

Max. Points

Working Conditions Max. Points

Influence 8.7 Unavoidable Hazards 3.7

Positional Impact 7.5 Non Conduciveness of Job Environment

3.1

Discretionary Power 4.3 Lack of Job Prospects 3.7

Beneficiary Relationship 8.1

Safety & Risk 8.1

Sub total 36.7 Sub total 10.5

HEALTH Job Roles Job Points

(100) Pay Band

(PB) Total of Entry Pay and GP

OT Assistant 14.9 PB1 7730 Radiographer 17.1 PB1 11360 Lab Technician 17.7 PB1 11360 Dietician 23.6 PB2 17140 Assistant Veterinarian 24.8 PB2 13500 Physiotherapist 24.8 PB2 13500 Nurse 26.1 PB2 17140 Veterinarian / Veterinary Officer 38.5 PB3 21000 Doctor MBBS 40.1 PB3 21000 Doctor MD 46.9 PB3 25350 Doctor Super Specialization (Heart Surgeon)

55.9 PB4 65200

HEALTH (Points for sub-Dimensions)

EDUCATION & RESEARCH Job Roles Job Points

(100) Pay Band

(PB) Total of Entry Pay and GP

Teacher PRT 24.5 PB2 13500

Teacher TGT 27.3 PB2 17140

Librarian 29.8 PB2 17140

Teacher PGT 30.7 PB2 18150

Scientist-C 35.4 PB3 21000

Scientist-C in Atomic Energy and Space

37.9 PB3 21000

Principal School 49.4 PB3 29500

Principal College 54.7 PB4 53000

EDUCATION & RESEARCH (Points for sub-Dimensions)

ENGINEERING Job Roles Job Points

(100) Pay Band

(PB) Total of Entry Pay and GP

Plumber (high skilled) 15.5 PB1 9910 Electrician (high skilled) 16.8 PB1 9910 Welder (high skilled) 16.8 PB1 9910 Technical Staff Railways Grade III

18.0 PB1 9910

Draftsman 18.3 PB1 9910 Foreman 23.3 PB2 13500 Graduate Engineer Railways

25.5 PB2 17140

Assistant Engineer 25.5 PB2 17140 Executive Engineer 41.0 PB3 25350

ENGINEERING (Points for sub-Dimensions)

INFORMATION TECHNOLOGY Job Roles Job Points

(100) Pay Band

(PB) Total of Entry Pay and GP

Data Entry Operator

13.4 PB-1 9910

System Analyst (Junior)

24.2 PB-2 13500

Software Developer 25.5 PB-2 17140

Programmer 25.5 PB-2 17140 Software Engineer 25.5 PB-2 17140

Network Engineer 26.1 PB-2 17140 System Analyst (Senior)

35.4 PB-3 21000

INFORMATION TECHNOLOGY (Points for sub-Dimensions)

GENERAL Job Roles Job Points

(100) Pay Band

(PB) Total of Entry Pay and GP

Gardener 8.1 PB1 7000

Clerk 8.7 PB1 7730

Cashier 9.6 PB1 7730

Receptionist 11.2 PB1 7730

Postman 12.1 PB1 8460

Stenographer 12.4 PB1 9910 Photographer 13.4 PB1 9910

Driver LMV 14.4 PB1 9910

GENERAL .Continues Job Roles Job Points

(100) Pay Band

(PB) Total of Entry Pay and GP

Store Superintendent 18.3 PB1 9910

Publicity Inspector 18.6 PB1 9910

Driver HMV (long haul) 19.3 PB1 11360

Private Secretary 20.5 PB2 13500

Assistant Store Officer 26.7 PB2 17140

Accounts Officer Railways

27.0 PB2 17140

Accounts Officer 27.0 PB2 17140

GENERAL (Points for sub-Dimensions)

PART - II

Clear misunderstanding of ground reality &

study based on wrong facts

1. Entry level qualification for Sr. Section Engineer in Railway is B.E./ B.Tech.

2. SSE in Railway is responsible to extend technical support to Indian Railways in t