Monday, July 27, 2009

Beating The inflation: A PSU babu of 2009 is better off than his counterpart of 1971

AN average employee of a public sector undertaking today is better off than his counterpart nearly four decades ago if a comparison is drawn between rise of emoluments vis-à-vis an increase of consumer price index, which factors in inflation. Though many of the PSUs have sound internal resources to afford even a better pay to its employees than what they have been offering now, the current crisis in Air India has forced analysts to revisit the recently presented Economic Survey, 2008-09, which compares the increase in the per capita emoluments of public sector employees in India with the increase in the consumer price index (CPI) over the years. The per capita income of public sector employees from 1971-72 to 2007-08 rose by 58 times whereas the rise of CPI was mere 30 times, an analysis in a recent media report showed. That means an Air India employee, for example, should have earned substantially lower if rise in CPI had been a major criteria to increase salary. Yet, the establishment cost of the government as a whole is not alarmingly high as yet. The provision for pay and allowances of the government employees for 2009-10 is Rs 85,078 cr, which is just 8.5% of the government’s proposed expenditure of Rs 10 lakh crore during the fiscal, the report further said. A woman civil servant to get 180 days of child adoption leave The government has decided to increase the Child Adoption Leave from 135 days to 180 days in line with the maternity leave which was already increased to 180 days according to the recommendation of the 6th Pay Commission. According to an office memo, issued by department of personnel and training (DoPT), a female government servant in whose case the period of 135 days of Child Adoption Leave has not expired on the date of issue of these orders shall also be eligible for Child Adoption Leave of 180 days. It was further decided that a male government servant including an apprentice may be sanctioned Paternity Leave for a period of 15 days within a period of six months from the date of valid adoption.


  1. Indeed a positive measure. It will boost adoption by the babus.
    No doubt today bureacrats are better off than their counterparts 40 years back in terms of perks, pay and many other factors. Their workload has also gone up especially after globalization...


  2. Beating The inflation: A PSU babu of 2009 is better off than his counterpart of 1971.
    This is more than true in Govt employees too. Both employees of PSUs And Govt get minimum 5% increase every 6 months. What do retired employees of PSUs get- a negative return on their savings.