Now, performance-based pay for govt jobs

IIM Ahmedabad, India's top B-school, will provide a performance-linked pay model to the Sixth Pay Commission, which has been assigned the task of recommending revised pay scales for central government staff.

The IIM-A report and so also of the other study groups constituted by the pay panel is expected by June-July, the commission sources said.

The IIM-A study group, headed by Biju Varkkey, is evolving measurable and quantifiable criteria for judging performance and productivity of different grades of employees in various government organisations depending upon the nature of work and relationship with their users/clients.

At present, pay increases in government are based on annual increments. The salaries depend more on length of service and grades rather than the performance of an individual employee.

The commission has asked the IIM-A study group to examine international best practices and develop an India-specific model that would foster accountability and could be linked to deliverables.

The commission will incorporate the IIM-A suggestions, while formulating its recommendations which have to be submitted to the government by April 2008.

The commission has also appointed study groups to estimate the compensation package for the government employees and the cost to the government, and suggest long term measures for achieving the reduction in the liability of the union towards terminal benefits of central government employees.