Pay Panel suggests inflation-guard for regulators salary

As the government continues its search for new heads of two key regulators Sebi and CCI, the Seventh Pay Commission has recommended guarding their salaries against inflationary erosion.

At present, the Securities and Exchange Board of India (Sebi) and Competition Commission of India (CCI) Chairmen are given a consolidated pay package of Rs 4.5 lakh per month. While the Pay Commission has recommended the same package for the Chairpersons of nine regulators including Sebi and CCI, it has also suggested steps to guard against inflation.

The regulators have been demanding for periodic revision of consolidated pay on the pattern of the government servants. The Commission, however, said the consolidated pay structure was delinked from the pay and allowances structure and the pension drawn by re-employed government retirees is also not deducted from the consolidated pay. Therefore, the revision in the consolidated pay package cannot be linked to six monthly Dearness Allowance increase provided in the case of central government employees, the Commission noted.

“However, keeping in view the erosion of purchasing power through inflation, the Commission recommends that the consolidated pay package may be raised by 25 per cent as and when Dearness Allowance goes up by 50 per cent. 

“All other benefits, including medical facilities, TA/DA on tour etc may be provided by the regulatory bodies as per their rules and regulations,” it said in its recommendations. For members of these nine regulatory bodies, the panel has recommended a consolidated pay package of Rs 4 lakh per month. In case of retired government servants, their pension will not be deducted from their consolidated pay, it added.

While it will take some time before the government decides on implementation of the new recommendations, these are likely to further increase the lobbying among the government officials for positions at these regulatory bodies.

At regulatory bodies, there are two types of pay packages -- one with the government pay structure and other with a consolidated pay package. 

The rationale for consolidated pay package is to ensure comparability with packages available in the market so as to attract professionals and experts from the private sector.