If you're wondering why so many people want to join the government, the answer's obvious "� the pay's better! Analysis from Invest India's IIMS Dataworks' all-India household survey shows that it is only at senior levels that private sector pay is significantly higher than that in the government. Indeed, after the 6th Pay Commission recommendations, this difference at the lower levels has risen further. Thus, at the lowest clerical grade, the annual salary paid by the private sector is Rs 58,289 while the equivalent government pay is Rs 233,682. At a level higher, the difference is less stark, but still considerable "� as against the private sector salary of Rs 193,000, the public sector salary is Rs 378,450. At the senior management level, private sector salaries are around double those in the government "� at very senior management, the differences are even starker, with private sector salaries running into crores. Interestingly, since the Pay Commission allows full pension benefits to those who quit after 20 years of service (as opposed to the current 33 years), a smart person can draw a higher salary in government and then quit to join the private sector at senior management levels.
| Private Sector | Government Sector
(Post-VI Pay Commission) | | Description | Share in
employment (%) | Average
Annual
Salary (Rs) | Description | Share in
employment (%) | Average
Annual
Salary (Rs) | Senior
Management | 1 | 17,20,345 | HoDs / Joint Secy/
Secretary | 2 | 9,23,940 | Middle
Management | 5 | 5,52,000 | Dy Jt. Directors /
Under Secy/ Joint Secy | 3.5 | 4,75,890 | Junior Execs/
Supervisors/
Instructors | 18 | 1,93,000 | Clerical /
Accountants /
Junior Officers etc. | 63 | 3,78,450 | Peon/ clerical/
salesman/ factory/
floor worker/
job worker | 76 | 58,289 | Peon / Drivers /
Supervisors etc. | 31.5 | 2,33,682 | | Source: IIMS Dataworks Assumptions- Private sector salaries based on 2007 all-India survey. Data for government assumes DA @15% and HRA @30% |
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