.....State-owned banks are thinking of changing the rules that govern the LTC regime, but that will not help. What could, is to scrap the allowance altogether and pay the
money as a part of bureaucrats’ salaries. There is no point, apart from
ducking a little bit of tax, in distributing travel or other allowances separately from the pay cheque..........
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1 comment:
The temptation to convert perks into hard cash by foul means is not a phenomenon unique to civil servants enjoying LTC. Your edit has nailed a malady which has spread into the entire remuneration and compensation system in the organised sector across public and private sectors and the legislators. Depending to the specific payment you refer to, justification will differ from tax issues to industry comparisons and legal constraints to employee preferences. One wonders why government and employers feel so shy about transparency in the payments they make. Limiting comments to the perks issue, government should consider the option of including this issue in the Terms of Reference of VII Pay Commission asking the Commission to structure the pay scales keeping in view the range of Cost to Company(Govt) per employee in each category. Pay and all allowances including government expenditure on housing, healthcare and retirement benefits should be factored in C to C. The employees should have the freedom to decide the ratios of various perks they would like to enjoy within their overall eligibility.
M G WARRIER, Mumbai
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