dear all, i am chidambaram and have created this blog for discussion and debate of subject of mutual interst. i hope this blog will enable us to discover new interesting areas and benefit us.
The hot topic today in any Govt R&D organization like DRDO/CSIR/ISRO are talent/manpower crunch of engineers/scientists and lot of young engineers are leaving these organizations to private sector thanks to the booming software industry. Govt institutions are finding it difficult to recruit 100 or 200 engineers whereas Infosys, TCS etc., announce recruitment of 10,000 engineers per year.
We will discuss the advantage and disvantage of the govt sector and the private sector to make the informed decision and main emphasis on such discussion will always start from the pay package. The main reasons cited for their leaving is pay packages offered by govt R&D organization are far below than what is offered by private sector. We will discuss each point one by one. Is it really true.
Let us take the case of pay package first.
We will take the case of a fresh recruit in any company like Infosys or TCS etc., and these companies offer a CTC (Cost to the Company) to an average of Rs.3.00 Lakhs P A and their typical pay slip is as follows :
Monthly Annually Basic 5000 60000 HRA 2500 30000 Conveyance 800 9600 Medical 1000 12000 Special Allowance 6500 78000 CCA 750 9000 Meal Voucher 1000 12000 TOTAL (A) 17550 210600 EPF 600 7200 Gratuity 250 3000 Medical Insurance 750 9000 Performance linked Bonus 6000 72000 TOTAL (B) 7600 91200 TOTAL (A+B) 25150 301800
CTC means cost to the company incurred by the company towards employee and companies counts every rupee spent on its employee. In the instant case, if you see the net salary received in hand as per “A” is Rs.17550 only and rest given towards PF, ESI, Medical Insurance etc., Further, the performance Linked Bonus is a is based on the performance and payable to the employee on roll when it is declared . No one is aware of his performance and if he resigns before he forfeits his entire amount. we will will take the full amount in our case Rs.6000 and the total take home in that case will be Rs.17550 + Rs.6000 = Rs.23550. Hence one finally get s a take home of Rs.23550.
We will take an illustration of a fresh recruit in any R&D organization in a metro cirty. On joining the engineers salary will be as follows :
Monthly PA Basic Pay 8000 96000 DP 4000 48000 Dearness Allowance (41%) 4920 59020 HRA 30% 3600 43200 Transport Allowance 800 9600 CCA 300 3600 Professional update allowance 416 5000 22036 264440
The final take home of engineer in govt R&D institution is Rs.22036. and if you compare it what they get in private sector both are on par.
Further these R&D institutions have the campuses along with the Offices and staying in the campus is a great advantage and these institution have the facility of 100% accomodation for engineers. Further these campuses are very vast and act like a gated community with security and greenery. In such a scenario, it is a five minute walk to the office and spending quality time in office and family with full of energy . In contrast compare the situation in any software industry in any metro ,like bangalore where most of them are located on the outskirts of city and one has to commute hours to reach them because of traffic and typically a employee spends 3 to 4 hrs in traffic before reaching office . This is the situation software companies want to avoid wherin their employees are tired before reaching the office.
You can see from the above that there is no diference between the two and and in some factors govt job is more preferable. We will also see the PF, Medical etc also.
Then where is the problem and govt R&D institution are not able to attract people.
We will discuss
Please post your comments to discuss and discover.
Posts
1 comment:
How good is Government Job?
The hot topic today in any Govt R&D organization like DRDO/CSIR/ISRO are talent/manpower crunch of engineers/scientists and lot of young engineers are leaving these organizations to private sector thanks to the booming software industry. Govt institutions are finding it difficult to recruit 100 or 200 engineers whereas Infosys, TCS etc., announce recruitment of 10,000 engineers per year.
We will discuss the advantage and disvantage of the govt sector and the private sector to make the informed decision and main emphasis on such discussion will always start from the pay package. The main reasons cited for their leaving is pay packages offered by govt R&D organization are far below than what is offered by private sector. We will discuss each point one by one. Is it really true.
Let us take the case of pay package first.
We will take the case of a fresh recruit in any company like Infosys or TCS etc., and these companies offer a CTC (Cost to the Company) to an average of Rs.3.00 Lakhs P A and their typical pay slip is as follows :
Monthly Annually
Basic 5000 60000
HRA 2500 30000
Conveyance 800 9600
Medical 1000 12000
Special Allowance 6500 78000
CCA 750 9000
Meal Voucher 1000 12000
TOTAL (A) 17550 210600
EPF 600 7200
Gratuity 250 3000
Medical Insurance 750 9000
Performance linked Bonus 6000 72000
TOTAL (B) 7600 91200
TOTAL (A+B) 25150 301800
CTC means cost to the company incurred by the company towards employee and companies counts every rupee spent on its employee. In the instant case, if you see the net salary received in hand as per “A” is Rs.17550 only and rest given towards PF, ESI, Medical Insurance etc., Further, the performance Linked Bonus is a is based on the performance and payable to the employee on roll when it is declared . No one is aware of his performance and if he resigns before he forfeits his entire amount.
we will will take the full amount in our case Rs.6000 and the total take home in that case will be Rs.17550 + Rs.6000 = Rs.23550. Hence one finally get s a take home of Rs.23550.
We will take an illustration of a fresh recruit in any R&D organization in a metro cirty. On joining the engineers salary will be as follows :
Monthly PA
Basic Pay 8000 96000
DP 4000 48000
Dearness Allowance (41%) 4920 59020
HRA 30% 3600 43200
Transport Allowance 800 9600
CCA 300 3600
Professional update allowance 416 5000
22036 264440
The final take home of engineer in govt R&D institution is Rs.22036. and if you compare it what they get in private sector both are on par.
Further these R&D institutions have the campuses along with the Offices and staying in the campus is a great advantage and these institution have the facility of 100% accomodation for engineers. Further these campuses are very vast and act like a gated community with security and greenery. In such a scenario, it is a five minute walk to the office and spending quality time in office and family with full of energy .
In contrast compare the situation in any software industry in any metro ,like bangalore where most of them are located on the outskirts of city and one has to commute hours to reach them because of traffic and typically a employee spends 3 to 4 hrs in traffic before reaching office . This is the situation software companies want to avoid wherin their employees are tired before reaching the office.
You can see from the above that there is no diference between the two and and in some factors govt job is more preferable. We will also see the PF, Medical etc also.
Then where is the problem and govt R&D institution are not able to attract people.
We will discuss
Please post your comments to discuss and discover.
Post a Comment