Who will care for pvt sector employees? 

The Rs 80,000 crore pay hike bonanza to Central government employees will benefit over one crore employees and pensioners. Importantly, it would not end here as the States too have approximately the same number of staff. Consequently, another Rs 80,000 crore would be doled out to them subsequently.

Notably, adjusted to inflation and heavy tax deductions, the real hike per employee is not a bounty as it appears. At the upper end, the high-paid employees might have more surpluses but those at the lower-end would be paying higher taxes and in actuality might take back home less.

Undoubtedly, this calls for a relook at our income-tax policy. One, do we really have so many employees on roll? If one goes by the 2011 Census, the total number of Central government employees is around 31 lakh. Besides, the number of employees in States in the Census is far less than the numbers projected now.

True, except some recruitment largely in the security forces, not many have been put on rolls as there is a sizeable number of casual and contractual appointments. Sadly, they would not be beneficiaries of the Seventh Pay Commission’s bonanza.

Besides, the government might have estimated a higher payment amount than is really needed. Bluntly, both the Centre and the States would not have to pay the earmarked Rs 80,000 crore. It would be far less. Undeniably, the hike has caused heart-burn among private sector employees.

True, the Pay Commission states it has tried to have parity with corporate salaries. Is that true? Not really. Except for a miniscule of people at the top rung, corporates are not paying high wages.

Alongside, except for a few large corporates, many are not paying even what is due to an employee! Whereby, the government wage hike, though apparently a benevolent move, is creating severe social disparity.

Think. The average corporate wages in our country vary from Rs 7,000 to 40,000 per month. This is so even with the highly reviled software companies. In most cases, the employees are often not paid their last month’s wages, if they leave or are sacked.

Moreover, their wages are also not inflation adjusted. Often, the hikes that the corporates announce are adjusted against a supposed higher work target. And the employees are penalised for falling short of it wherein workers suffer the ignominy of wage cuts.

Even in private education institutions be it a primary, secondary or higher learning colleges, the faculty and employees, despite so called UGC benchmark, hardly ever get proper wages. Scandalously, in many cases, the employer keeps their first month salary as “security” without giving any written receipt.

Many others pay through the bank an amount but asks them to return 15 to 20 per cent, sometimes more, in cash to the employer. Furthermore, smaller companies are not following any formula for wages. It all depends on their needs and hire and fire is the rule.

The employee is often expected to work without pay once a notice has been served to him. Gratuity and other benefits are mostly anathema in such institutions. Alas, as labour unions have been weakened and employers emboldened, there is little succour for the workers.

Moreover, it is good that the government remains a model employer, especially against the backdrop of total inflation being around 47 per cent since 2010 – an average of 8 per cent a year. This has caused major erosion of wages necessitating this pay revision.

Pertinently, if private sector employees are not compensated for this erosion of wages, it is a cause for concern for the Indian society. As it is reflective of either myopia, profiteering vision of the private sector or depicts that the economy is not in that bright a spot as is being projected by the government despite its efforts, projects, allocations and investments.

By Shivaji Sarkar