Discussion
Consider the following observations of Sixth Pay Commission regarding performance related pay :
(i) It should be made a part of the budget.
(ii) It should be given out of organisational savings generated due to increased efficiency.
(iii) It should be budget neutral.
(iv) A special 'head' should be created in the budget.
Select the correct answer by using codes given below :
Codes :
Answer: B
The Sixth Pay Commission recommended that performance related pay should be given out of organisational savings generated by increased efficiency (ii) and that it should be budget neutral (iii). The statements that it should be made a part of the budget (i) and that a special head should be created in the budget (iv) are not its observations. So only (ii) and (iii) are correct, which is the second option.
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