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Babus have to perform for pay

Pay Panel explores productivity-linked wages, lower pension bill, report Deepak Joshi and Gaurav Choudhury.

business Updated: Nov 23, 2007 22:56 IST

The government is working on landmark changes in government employment criteria, including performance-linked pay and incentives.

The 6th Pay Commission, which is expected to submit its report by April next year, is thrashing out the contours of the new wage structure for over 3.2 million central government employees.

Although the Pay Commission, set up last year, has not been asked to consider the issue of raising the retirement age from 60, the commission is assessing existing and future liabilities for the government on pay and pensions over the next three to four decades.

Finance Minister P Chidambaram informed the Lok Sabha on Friday that while the specific issue of retirement age did not figure in the terms of the Pay Commission, the government, however, had forwarded references of the matter to it for examination. To ensure that the state governments are able to take the impact of any wage revision, the Pay Commission has also sent a questionnaire seeking details on several counts.

"The fiscal profile of the state covering the details of major components of receipts and expenditure from 1996-97 and projections from 2007-08 up to 2015-16 taking into account the existing structure of emoluments of employees (with the expenditure on account of pay and allowances and pensions being indicated separately) may be provided," the questionnaire states.

There are close to 15 million state government employees, including staff of quasi-government and local bodies, in the country.

It has also commissioned a study on long-term measures for reducing the liability of the government on terminal benefits of central government employees.