replace pay with perks

The big pay hike decided by the government for the office of the President, Vice President and Governors is welcome news. Before the pay hike, with a salary of Rs. 50,000 per month the president of India earned less than a manger at one of the top end call centers. Now that the government has doubled the paycheck for the head of state, the office still earns less than a manager whose job may be to sell soap in a tire II city for a multi national firm. The hike is in line with the a similar augmentation in the salary of the MP’s who now earn Rs. 68,000 a month. The Government has obviously decided to follow some of the Singapore model where government functionaries are played in line with salaries that are in the private sector.

The real need is to overhaul the pay structures of public sector undertaking bosses. The average pay for a PSU boss is in the region of about 600,000 a year. This is not enough in the booming job sector of India and neither is it commensurate with his responsibility that includes managing financial outlays of hundreds of crores. The private sector bosses earn that sort of salary in a month.
The discrepancy in pay between the government and private sectors has lead to three chief issues. The first is that it leaves PSU bosses open to temptations and corrupt practices. Secondly the best brains in the public sector can easily be lured to the private sector. This is a real and present danger for PSU's sectors ranging from realty to big industry and even start up companies now poach from the government. lastly the morale of the people on the top is effected if they have to constantly worry about small beers.

There are counter arguments concerning pay hikes in the public sector. that the Psu people get great homes, lot of help, free car and other related perks. They also come under far less scrutiny on the performance front compared to the private sector, which is answerable quarterly to share holders.
These are valid points. Perhaps the time has come top replace perks with pay in the public sector there by you will have greater flexibility as well as transparency on how much is being spent from the tax payers pocket for these mandarins.