Despite Global Economic slow down and situation near deflation in money circulation Indian Public Service sector and Government officials received a huge pay hike in their salaries. This is completely in contrast to their counterpart in the private sector employment where retrenchment, and wage freeze and wage cut are marking one effect of economic despair. The sixth pay commission is boosting the purse and fattening their aspirations, while as the private sector employees are living in uncertainty of loosing jobs and heavy wage cuts. Until recently the situation of private sector employees sounded enviable in comparison to public sector and other Govt. employees. Private sector, especially IT, Telecom and Finance sector employees, who until recently would receive regular pay hikes, bonuses and incentives of house rent travels etc., are facing cuts in their expenses. They are not able to meet the installments due for payments for the loans they had raised from banks and other financial institutions for purchasing a vehicle, home or educational loan for the kid.
On the contrary the Govt. and Public Sector Employee’s job is protected and secured with pension benefits and medical reimbursements and all other social securities. Govt. deducts very nominal contribution from the employees account against providing these social securities. Eventually till very recently Govt. employees of even high paid gazetted posts would feel very low in front of a private corporate manager but now position is changed a lot in favor of the public servant.
This apart a private sector employee has no fixed hours of duty means he is required almost round the clock by his/her employer, while as Govt. employees work strictly according to the fixed job hours only. There has been a nearly 21% increase in the pay of Govt. and many public sector employees after the recommendations of the sixth pay commission were implemented in September 2008. Economists had predicted a boost in the domestic consumption commodity market and thought it would give a flip to demand and rise in salary was expected to lift the domestic market in certain consumer goods but the hike has not affected much to raise the demand because, prices at this time have already reached such a peak where Govt. employees felt not much purchasing power left in their hands even after a hefty 21% increase in their salary. The arrears vanished in liquidating past debts and the increase in the salary is already defeated by the price rise in essential commodities and gold, which is essential for marriage of children in almost every Indian household. Thus situation is grim for both public as well as private employees unless the market improve.
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