Recent study on analysis of the 7th Pay Commission recommendations mentioned that salary levels for entry and junior levels will be competitive. The implementation of the 7th pay commission will make entry level government jobs more attractive than those in the private sector. The study found that compensation levels for entry level in the private sector is low compared to that in the government. While 7th pay recommendations will expected to get competitive salaries across the government sector, along with enhancing positive perceptions of a government job, leading to greater competition between the two sectors for talent.
While many private sector jobs will be at a discount of approximately 30% at entry levels and pay would be very similar at junior and mid management levels in government and private jobs.
Salary level comparisons as per the study were mentioned as below:
Entry level: Private sector salaries 27% lower than in government sector.
Junior management: Private sector salaries 2% higher than government sector.
Middle management: Private sector salaries 10% higher than government.
Senior management: Private sector salaries 28% higher than government.
Top management: Private sector pays at least 65% higher than government. Compensation levels for senior and top management levels will be significantly higher for senior and top management levels. The pay mix in the government sector and public sector firms is generally heavy on basic and DA components, which leads to differentiations among retirement benefits between two sectors. Sectors such as communications, IT, audit, accounts and infrastructure sectors have 25-30 percent vacancies looking to attract young talent with fair skills. More than 29% of workforce in central government is aged between 50-60 years and it is expected that multiple opportunities will exist for younger workforce in coming years.
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