Pay divide: honchos leave the rest far behind | Business Line

Pay divide: honchos leave the rest far behind | Business Line


Apropos the report “Pay
divide: honchos leave the rest far behind” (July 6), one wonders whether the
Indian HR managers are guided by any national or rational policy in regard to
wages, pay and remuneration which can be generally classified as ‘compensation
for work done’, across sectors and ownerships. Immediately after independence,
when President’s salary was fixed at Rs10,000 per month, there was a ratio of
1: 10 for minimum and maximum salaries in view and even top level private
sector compensations did not exceed the President’s salary in many cases. It is
not my intention to plead for any such ratio or for levelling of compensations
in any manner.
Whether in public
sector(government included) or in private sector, there is a need to
differentiate share in revenues or profit of the department or organisation
from compensation for work done. Tax system also should differentiate these two
streams of ‘incomes’. While the former should be part of incentives for
entrepreneurship or extra work, the latter should be commensurate with the
quantum and quality of the work done. At the minimum, remuneration should take
care of sustenance and a component for saving for post-job life and at the
maximum should reckon skills, career progression of professionals and an
element of incentive for competition and involvement.
Now that there is enough
confusion on wage-related issues including pension, this may be the opportune
time for GOI to think of setting up a national level commission of experts to
prepare guidelines on wages and income after considering the views of all
stakeholders, for the benefit of all HR managers. Such a document could form
the basis for future wage decisions in government and private sector.

G Warrier,


Popular posts from this blog


The King of Ragas: Sankarabharanam