The Pay Commission Conundrum - A classic catch 22 situation
The Bombay Municipal Corporation has put several projects, that affect common-man’s everyday life, on hold. The primary reason, it seems, is the arrears of payments to BMC employees under 5th Pay Commission

The total arrears of BMC employees under this is going to be a whooping 2700 Crores
Now, let’s see this – All of us agree that the wages paid to all government servants (i.e. police, municipality workers, defense personnel, teachers of govt. aided schools, para military forces etc.) are paltry as compared to the cost of living
The government is doing its bit, by setting up pay commission every 5 years and providing the employees the revised wages with retrospective effect (i.e. all 5 years of differential wages are paid in the year in which pay commission report is implemented)
However the government not only doing injustice to these employees but also indirectly promoting mal-practices & corruption at all levels, completely unchecked – Want to know how? Read on…
And here is the real catch 22 of however…
1. The government is paying 5 years arrears at a stretch to employees - That means, the employees will need to shell out more taxes since they will fall in higher tax bracket in the year of receipt of these arrears
2. This reduced the beneficial impact of pay hike to a remarkable extent on the employees
3. Secondly, because of this sudden pressure on finances of various bodies due to pay commission arrears, lot of ‘for the benefit of common men’ projects are either shelved/ put on hold/ started partially!
4. Third and most important, since the ongoing wages are paltry; all government servants more or less resort to mal –practices/ corruption…Paper leaks, adjustment of marks, fake mark sheets, haftas, settlement instead of actual penalty…This is the biggest impact of not increasing their pay on yearly basis but giving them arrears in one-go
5. An indirect impact of this is also seen in reduced revenues of government/ local bodies…Since the public servants can’t make ends meet in paltry salary, they resort to under-the-table deals like foregoing the official penalty that would have come into government’s coffers for bribes etc.
So, in a nutshell, Pay Commissions are actually detrimental to the country as a whole…I am not sure if my analysis is right or wrong, but common-sense tells me that there is a problem here!!!





