Government and Central Public Sector Undertakings (CPSUs) pay more salary for entry-level jobs compared to private companies, a study conducted by the Indian Institute of Management (IIM), Ahmedabad has revealed.
The Study for Comparing Salaries/ Emoluments in the Government Sector vis-à-vis Central Public Sector Undertakings/ Private Sector in India was commissioned by the 7th Central Pay Commission constituted by the Union Government. It took into consideration salary levels at entry, then at the 3rd, 5th, 10th, 15th, 20th and 25th years of experience.
It covered a wide range of professions including medical comprising doctors, nurses, physiotherapists, dietitians and lab technicians. Principals of schools and colleges, teachers, scientists, engineers, clerks, software developers, accounts officers and others were also included.
The Study for Comparing Salaries/ Emoluments in the Government Sector vis-à-vis Central Public Sector Undertakings/ Private Sector in India was commissioned by the 7th Central Pay Commission constituted by the Union Government. It took into consideration salary levels at entry, then at the 3rd, 5th, 10th, 15th, 20th and 25th years of experience.
In most of these jobs, government organisations salaries were more at the start, especially for jobs requiring lower levels of skill and hierarchy. However, as the employees gained experience, the salary difference narrowed, became more comparable and then increased for private sector in certain professions.
In the case of doctors with MBBS qualification CPSUs paid more than the government or private sector not only at the entry-level but also in later years. However, for specialists, though the pay was more at CPSUs at entry-level, salary in private hospitals went up significantly after a few years.
Scientists receive more salary in the government till mid-career level. However, the ability to provide results that goes up with number of years of experience would result in increased pay at a later stage.
However, physiotherapists and dietitians get much higher salary in government and CPSUs, compared to private sector where they draw much less. According to the study, this trend is noticeable in jobs with less career progression that need learning only in early stages of career like those of lab technicians, operation theatre assistant and radiographers.
The study identifies five factors that determine the level and components of salary as career progression, learning potential on the job, supply over demand in the labour market, requirement of attracting top talent with excellent academic performance and in retaining key competencies.
For engineers, software developers, network engineers and programmers, CPSUs pay more compared to government and private sectors but the differences narrow with the years of experience. In the case of clerks, receptionists, drivers and gardeners, government and CPSUs pay more salary at not only at entry-level but also later in career compared to private companies. (Image Courtesy : commons.wikimedia.org)
