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Performance pay points to new era

The panel has proposed differential increments for government officers, where annual increments in the band will vary depending upon the performance, reports Deepak Joshi and Gaurav Choudhury.

business Updated: Mar 24, 2008 21:04 IST

The pay commission has set into motion entry of persons from outside the cadre into government functioning and has suggested making fixed allowances inflation proof.

It has proposed that the creation of additional posts in senior administrative grades in future to be strictly on “functional considerations with such posts invariably being created outside the cadre to be filled by a method of open selection.”

The commission called for setting up a system for giving market-driven compensation to young scientists and posts requiring special expertise and professional skills.

It also proposed a performance related incentive scheme (PRIS). “A scheme of PRIS (performance related incentive scheme) has been recommended... PRIS should also work as a substitute for bonus, honorarium and overtime allowances,” the report said.

Taking note of the emerging competitive scenario and the need to raise efficiency, the panel has recommended, “Certain posts in senior administrative grades and higher administrative grades requiring technical and specialised expertise and not encadred in any of the services to be opened for being filled by suitable officers within the government as well as by outsiders on contract. Shift from career-based to post-based selections in the higher echelons of government in order to get the best domain based expertise.”

Govt must compete for talent.

It has asked the government to revise the consolidated salary periodically to neutralise the effect of inflation.

The panel has also proposed differential increments for government officers, where annual increments in the band will vary depending upon the performance. While about 80 per cent of officers will receive a normal increment of 2.5 per cent of their basic pay, the 20 per cent high performers would be given a higher increment of 3.5 per cent.

Unlike the private sector, performance for the government would be measured in terms of achieving societal goals and desired outcomes, for example, reduction of crime, enhancing the quality of life, reducing infant mortality etc.

“In the governmental context, performance can be defined as the ability of the Government to acquire resources and to put these resources to their most efficient use (input-output relationship) and to achieve the desired outputs and outcome goals (output-outcome relationship). It is the shift from inputs-process emphasis (efficiency) to results, social goals and outcomes (effectiveness),” it said.