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  • Category: Miscellaneous

    Big disparity in salaries between private and Govt employees

    There is a large rush for Govt jobs and the competition is also very tough. Once a person gets a Govt job then he has a security for life time and moreover salary is also good. There are many associated benefits also in the Govt sector. They also get excellent pay revisions time to time. Their DA increases as per the increase in inflation. That is the reason why there is a beeline for Govt jobs. On the other side in private enterprises though some seniors get handsome salaries but the majority of the employees are getting low salaries. There is a big disparity in this respect between the Govt and private organisations. What measures Govt can take to reduce this gap? How this situation can be rectified? Please give your opinion about this issue.
  • #697388
    Nowadays keeping this difference in mind, many governments organisations are outsourcing many of the works to private organisations. I know a government institute where a scientist gets minimum Rs.50000/- as his starting salary. The same institute has outsourced some work to the private organisation where a scientist who is equally qualified and doing the same type of work will be getting Rs.20,000/- pm. Now then institute will be paying Rs.40,000/- to the private company per head. Now the government is saving Rs.10000/- per head and the company is making a profit of Rs.10000/- per head and another Rs.10000/- is being spent by the private organisation as administrative expenses. The poor employee is suffering.
    The government has announced some minimum wages to the private employees and they are very much lower than what they are paying. The government can make the salaries they are paying as minimum salaries. But the private industry may not survive by giving such a huge amount towards salaries. But what government can do is in addition to minimum wages they should decide some rate of increment per year so that seniors will get some good amount. Otherwise, in many cases, experienced persons also are getting minimum wages only.

    always confident

  • #697395
    The disparity is there in small and medium organisations. It is not there in large organisations. In such organisations they take care of their empoyees by giving perks and other facilities outside salary. So the tax burden of the employes is reduced and kept to nil or the bare minimum.

    Similarly the disparity is against the government employee in top and responsible posts.

    Then there is a big disparity unfavourable to the government employee. That is of the severe disciplinary action. A government employyee is never rewarded or given incentives. But even a small mistake he is taken to tas and issued memos, expalanations called for, investigations done and his life will be made hell for a long time. But in private sector the erring empoyee is just sent out and he can take up another job elsewhere. But in government jobs the employee will always be under scare of the proverbial Democles sword hanging above his head. However good he works, he is not rewarded. .

    Even for a rupee of rise or reimbursment of actual expenses i takes a long route and time to decide yes or no. In many government organisations the employees spend fom their hand for essential things and also on situations ike natural calamities. On such times it is only the government employees who are on the field to do help and care. Even for elections the government empoyees are deputed irrespective of their discomfort and difficulties.
    In most designations and seats a government employee is accountable. They suffer from political intervention, political pressure andthreat.

    As the private sector organisations do not show the full remuneration in their salary slips as salary, it is seen that many households where more than one or two famil ymembers are well employed in private sector with reasonable compensation too, have obtained Pink ration cards by which they collect many benefits . Many of them get many other benefits where the qualifyingthreshold is a certain amount of monthly salary. But a family of a government empoyee with lesser income will not get this benefit as his income is fully recorded to the last paisa as salry.

    There are m,any employees regretting their joining the government job and not in private job. Private secto employes except in small organisations get incentives, persks, bonus and other benfits in cash and kind too.

  • #697616
    Before comparing private and Government companies let us see the different salary level for a same post in two private companies having similar operations. Earlier there was difference in salary to men and women employees and to curb this Equal Remuneration Act is enacted. This is uncomparable now .

  • #697632
    Gone are the days when my father got government jobs for three of my relatives at the drop of the hat without verifying the eligibility criteria nor demanding work experience. The Defense accounts department wanted staff and they asked the present employees to bring relatives and friends to the jobs. Unfortunately we were small children and our elder sisters are not qualified. So none of our family members got jobs but father helped our cousins who got the jobs. What I mean to say here that before 60 years there were no competition and wanting for jobs as the village lives were good and progressing. As the population started booming, people pushed to unemployment and the the private jobs were paying pittance and that disparity is continuing even today. But government cannot do anything in this issue and it is left to the will and decision of the private employer.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #697650
    It is true that government employees have better package and other facilities like pension, insurance, holidays,etc but getting into a government job is very tough. The exams and the chance of getting into a good post is very difficult and thus many take a year gap to clear government exams.

    In private sectors, we may get jobs but when we compare the salary and other facilities, it is like peanuts. You are overloaded with work, time-frame and may have to do over-time without pay so as to complete the work. When you talk about pay, it may start from 10K to 15K for an engineer, Nurses, etc. The leaves are also less when compared with government employees.

    As per my suggestion, the government need to implement a basic pay scale for a post or designation in any private company. They need to verify the same through ESIC and PF account. Need to make them have insurance and also provide redemption for family insurances, etc.

    “The most important thing in life is to learn how to give out love, and to let it come in." — Morrie Schwartz

  • #697658
    Since liberalisation began in India in 1991 under the congress rule, the country saw a steady flow of disinvestment decisions. However, privatisation, where buyers took over management control, began later under the National Democratic Alliance governments. Arun Shourie, the country's first Disinvestment Minister, gave an impetus to the exercise. He is credited with the privatisation of Maruti, Bharat Aluminium Company Ltd., Videsh Sanchar Nigam Limited and Hindustan Zinc through the strategic sale process.

    Now the present NDA government is planning to cede all managerial powers of 46 public sector units to the private buyers. Some of the PSUs are running in loss like BSNL but some of them are making handsome profit like Bharat Petroleum Corporation Limited (BPCL) are in pipeline to be sold to private firms.

    In this way this disparity in salaries and other perks between government and private sector will be narrowed down.

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