In the last little over 20 years, the governments both at the centre and states have increased the salaries of their employees so much that private sector employers are unable to pay even 50% of government salaries. The result is that highly educated candidates with degrees like M.E., M.Phil are sitting for competitive exams for the posts of Village Administrative Officers, Constables, Junior Assistants etc. for which the minimum qualification required is pass in 10th/12th Class. This means that these candidates have wasted their time and money. Each vacancy in government service attracts, 200-300 candidates.
Again for equal work, pay is unequal between govt and private sectors. For example elementary school teacher is paid around Rs.25000/- per month in the government schools while in private schools, they are paid around Rs.5000-6000/ p.m. and the private schools are unable to pay more. To more or less equalise the salaries in government/private schools, govt. should freeze the salaries in govt.sector and allow private sector to increase the tuition fee on the condition that they should pay higher salaries. Some sort of subsidy could also be considered.if it is considered not desirable to increase tuition fees.
There is also vast difference in the salaries in the organized sector and unorganized sector in private industry and business establishments. This also needs to be minimised.
The governments should therefore issue guidelines (not enforceable orders) to the private sector on salaries. For example. governments, taking into considerations its own level of salaries may suggest salaries of persons with +2 qualifications as Rs.15000, degree holders as Rs.20000/, ITI qualification as Rs.16000, diploma holders as Rs.18000 etc. Employers should of course be free to pay more or slightly less.