“Raise my salary”—D.SUBBARAO

RBI governor D.Subbarao, in a recent function raised an issue which is quiet relevant and in fact has been simmering for a while now i.e salary structure of psu banks and other companies. It's been widely felt across the board that the compensation of public sector bank’s employees is not quiet in sync with their actual competence, otherwise how can you justify the fact that India’s or perhaps south Asia’s biggest bank’s managing director O.P Bhatt takes home an annual pay package of 25 lakh which is perhaps equal to what a new entrant in an mnc or private sector bank gets.


This anomaly is not a “one way traffic” , at the entry level there are people in the PSU banks who get quiet attractive salary as compared to some of the private bank’s employees. Take the example of a peon in a public bank who gets at least 15k, plus other benefits and the fact that he is totally unaccountable and has his future secured because of pension does cause inequality in the society.

Having a skewed salary structure at a time when money is increasingly becoming the most important factor to judge one’s social standing in the society will add fuel to the already burning fire of inequality in our society. Time has come for the government to decide to do away with all the state patronages and controlling of the society through doles and subsidies and instead make level playing fields for every one where all gets their due share according to their competence and hard work and not because of extraneous factors.

All I am saying is the 10 yearly review of salary structure by the pay commission, is an out dated concept, where every month brings in a new reality P.S.U banks I am afraid have caught up in a time warp and loosing talented individuals to the more efficient private sector banks, this is a sad news for a country like India where the social responsibilities of these banks are much desired.

http://www.deccanchronicle.com/business/rbi-guv-bats-higher-pay-psu-executives-872