No cap on private sector salaries: FM

MUMBAI: Setting at rest speculation that the government may put a cap on salaries for India Inc, Union Finance Minister P Chidamabaram has said there cannot be any legislation on pay packets nor was it desirable.

The government does not legislate on salaries and government ought not, he said here, replying to a question raised by a Mumbai university research student on whether low remuneration was acting as a disincentive to attract researchers.

Government salaries were no doubt poor as compared to market salaries. In fact, government salaries no where in the world match private sector except in Singapore, Chidambaram said during an interactive session with students on Friday.

I do not think there is any comparison between government salary and salary of private sector. In fact, to come into the research field it calls for certain attitude. Are you inclined towards academics and research? He asked.

Nobel laureate and renowned physicist sir C V Raman could not have been a great scientist if he had thought he should be paid like it icons Narayana Murthy and Azim Premji. Having said that I agree that compensation for teachers, professors and researchers should be considerably enhanced. When late Rajiv Gandhi was the prime minister, it was recognised through UGC that the salary of a professor should be equal to a government secretary and i believe today the professor's salary is equal to the secretary, he noted.

I also agree that you need better laboratories, libraries and access to internet (for quality research), the Finance Minister observed.