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"Shape Up or Ship Out" - Will the Sixth Pay Commission have shocks for Indian 'Babus'?

From what the Chairman Justice B N Srikrishna has stated in an interview to Gfiles, the magazine, exclusively devoted to the 'Babus', it looks as if the Indian bureaucracy may have shocks when he submits the Sixth Pay Commission Report next April.

Justice B N Srikrishna, who is nationally known as the head of the Court of Inquiry of the Report on the 1992 Bombay riots, has told the Gfiles that his message to the Government of India civil servants is to "Shape Up or Ship Out". That would be his "Mantra" in preparing the Report.

He has the terms of reference to go by in preparing the Report: focus on 'good governance' which will seek to 'spruce up' to provide cutting edge administration. He hopes to rationalize existing pay structures and work out a pay package that will promote efficiency and productivity.

Please do not bank on automatic increase in scales. He is keen on "performance related incentives" that are over and above the pay. "All future growth should be attributable only to better end results with non performers being denied any growth. Shape up of ship out is our mantra".

Justice Srikrishna says that the government can "adopt a contractual approach for hiring of government employees for specific jobs at certain levels. He feels that the "spirit of competitiveness in the world of trade and commerce must be introduced in governance."

Will the Babus get the salaries that the private sector offers? He is keen to keep the financial implications of the recommendations in mind. He does not want to disturb the "comfort level" of the Finance Ministry, and says: "There is no point in recommending an increase of Rs 50 when all they can afford is Rs 10."

Justice Srikrishna also says that his job ends the day he submits his report. How the government puts the recommendations into action is "not any concern of mine", he says.

When asked about the kind of tactics used by his team, he said, "We believe performance should be incentivised."

"The approach of this commission is that most of the growth in emoluments should come in the form of performance-related incentives that are over and above the normal pay," he added.

"Any growth in the compensation should come on account of better productivity. All future growth should be attributable only to better end results with non-performers being denied any growth. We are at present working out the parameters on how such a policy can be implemented," he added.

When asked about is the Commission going to advocate a hire and fire policy for government employees, he said that the term of appointment of existing employee cannot be changed to their disadvantage, adding that "What the government can do is to adopt a contractual approach for specific jobs at certain levels."

The Commission, besides looking into the pay structure, allowances and other benefits of the Central staff, has also been directed to recommend new pay structures for personnel of the armed forces and officers and employees of regulatory bodies set up under Acts of Parliament.

When asked that most of exchequer money spent on paying salaries, he said, "The exact proportion varies from state to state. As per the information available with us, out of 20 states following the Central pay scales, 14 are in a comfortable fiscal position."Commenting on government pay scale vis-à-vis private sector salaries, Justice Srikrisna said that it would not be possible to match private-sector salaries.

"Boys are coming out of school are getting salaries of over Rs 1 lakh per month and more. We have to look into this whole issue to see how much parity we can achieve," he said.

When asked about if government employees have contractual jobs, then how will they receive pension benefits, he said that person on contract would be entitled to a higher compensation package and not to pension for the contractual periods.

"For employees appointed prior to January 1, 2004 will continue to get pension. Those recruited after this date is covered under the defined contributory pension scheme," said eminent jurist