Why does a private sector worker receive a lower salary compared to another worker doing the same job in the public sector?

Updated on : December 8, 2021 by Morgan Webb



Why does a private sector worker receive a lower salary compared to another worker doing the same job in the public sector?

This may not be true.

In companies, people earn higher salaries in management positions. Their salaries and benefits are much higher than those of the IAS and IPS tables.

In lower posts, your claim may be true.

A person who gets a job in the government must achieve high ranks in writing and interviewing. In private, such competition does not exist. More talent needs more pay.

A government employee must receive a good salary so that he cannot accept bribes. To be impartial, you need financial independence. Basically, we are all honest. It is when we realize that we have no money to lead a decent lifestyle t

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This may not be true.

In companies, people earn higher salaries in management positions. Their salaries and benefits are much higher than those of the IAS and IPS tables.

In lower posts, your claim may be true.

A person who gets a job in the government must achieve high ranks in writing and interviewing. In private, such competition does not exist. More talent needs more pay.

A government employee must receive a good salary so that he cannot accept bribes. To be impartial, you need financial independence. Basically, we are all honest. It is when we realize that we don't have the money to have a decent lifestyle that we take bribes.

A private sector employee does not need to serve the public.

Government employees are so numerous that they have very strong unions. They have bargaining power.

In the United States, public sector employees earn lower wages than for-profit private sector employees with equivalent education, training, and experience in equivalent positions. This is balanced to some extent with better job security and benefits for public employees.

Initially this is the case since it is difficult to judge your skills and abilities, after starting to work demonstrate your worth, dedication and intelligence and after a year look for a justified increase based on your skills and work compared to the other employee with whom you spoke. about in your question.

Who says private sector employees are getting lower wages? The only difference in the private sector is that sincere and qualified employees are honored, as opposed to a public sector where the personal relationship with the boss counts.

Government job is better even if it pays 40k instead of private job which pays 70k.

I have worked in the private sector and I can confirm that the private sector jobs in India are terrible. For those 70k, a private sector company will take 140k of work away from you. Most of the time, even though the official hours were 9 to 5 Monday to Saturday, I rarely left my office at 5 and most days they left around 7 p.m. and sometimes even he worked on Sundays.

Now I am in government work, I arrive at the office at 9 am and leave at 5 pm without any problem and the second Saturdays are free every month.

In a private job, I only have 7 days.

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Government job is better even if it pays 40k instead of private job which pays 70k.

I have worked in the private sector and I can confirm that the private sector jobs in India are terrible. For those 70k, a private sector company will take 140k of work away from you. Most of the time, even though the official hours were 9 to 5 Monday to Saturday, I rarely left my office at 5 and most days they left around 7 p.m. and sometimes even he worked on Sundays.

Now I am in government work, I arrive at the office at 9 am and leave at 5 pm without any problem and the second Saturdays are free every month.

In private work, I only had 7 days off without pay when I wanted to take a vacation and for that too they only gave me special permission from the boss as it was in his good books. While on the government job, you get 10 days of paid leave for LTC to take vacation anywhere in India.

In private work, I was happy with the salary initially for 2-3 months, but then I realized a few things:

  1. I was getting fat from just 5 hours of sleep and drinking sugary coffee to stay awake at the office.
  2. My private job made me work 2 to 3 times more than normal and only paid 70,000
  3. I did not have time with the family and the little time I had I used to sleep and recover physically than to interact with the family.
  4. Since they were working every Saturday, he had no time to go to the bank or to do housework, since on Sunday he also needed to rest and could barely move a muscle.
  5. Every day I used to curse my job, but I still had to work and give 100 percent otherwise I would get into the bad boss books.
  6. After 1 year of struggle, private work increased my salary by 5k and my salary became 75k. But that barely satisfied me when I realized that the expectations of me had increased even more. That meant they gave me even more work than I could bear.
  7. Now I am in a government job that pays me 60k a month plus benefits. And I am happier. More respect for the work done. The public appreciates with all their hearts when I work for them. I feel like I'm contributing to the nation. I spend more time with the family. I receive license paid by LTC. I work decent hours and get paid decently.

Once you have worked in the Pvt and Government sector, you will find that the Government sector pays more for hours of work performed than the Pvt sector.

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1: Wow, I'm getting a lot of negative reactions from people in the private sector. Especially those who are working in good startups. I'm happy for you if you have a good job that allows for a good work-life balance. I did not get that privilege in the private sector. So I decided to quit in a year.

2. Most people want to know about my publication. Guys, I was selected in the IRS civil service. Which is definitely better than 99 percent of the Pvt sector jobs. Didn't want to brag about that sooner. The thing is, even the youngest jobs in the government sector are better than in the pvt sector. This is because the capitalists suck your flesh and blood. Those who work in the Pvt sector know the false laddu called "incentive". They would know they have to say Yes, boss to everything. If you say No to work, you don't like it. Game over for you. Also in the private sector, new entrants can join at any level. If you had a good boss

3: Those who say I'm lazy. Well I'm not. I realize that I do know that I have only 8 hours to deliver in a day at work. I give my best shot every day. The IRS is a very responsible job. I'm taking revenge on that bloody capitalist class that makes huge profits and pays little taxes and small salaries to its employees.

4: Someone also said that I was in a bad job and that's why I suffered. Well, not really. That company has a very high reputation. But it is a false reputation. I can't take your name here and risk a lawsuit.

5: What government job pays 60k? Many of them actually. Do some research. My job now pays me 80k in hand after review and salary increases.

6: Those who think that what I have written is false and raise doubts as to why my muscles hurt so much and why I was drinking coffee all day. Guys, you need to have a life. What I said is 100% true. I swear.

7: Those who claimed that after 4 or 5 years they were earning a huge sum in the private sector. I am happy for you. Congratulations. But are you satisfied with only the cash? What is the balance between work and personal life? How does your family feel about your work? Are you intellectually, physically and emotionally happy? Think about this.

8. I lost all the fat that I accumulated. I joined a gym because I had time and energy left for it and now I weigh 10 kg less and have a lot of muscle.

Okay, I will respond based on my experience and any knowledge I have on this topic.

Background: My father has been serving in the government of India for the past 20 years and has worked vertically to achieve a highly respected position.

So why are they considered good? (I'll talk about the current scenario)

1. Pay
Your description (pay peanuts) makes me laugh. Do you know the wages after the sixth pay commission was enforced in 2009?
Here's what recent graduates are paying

  • ISRO - 4.5 lac (pay scale 15600 - 39000)
  • NTPC - about 6 lac (pay scale 24900-50500)
  • CANDLE - 5 lac (pay scale 20000
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Okay, I will respond based on my experience and any knowledge I have on this topic.

Background: My father has been serving in the government of India for the past 20 years and has worked vertically to achieve a highly respected position.

So why are they considered good? (I'll talk about the current scenario)

1. Pay
Your description (pay peanuts) makes me laugh. Do you know the wages after the sixth pay commission was enforced in 2009?
Here's what recent graduates are paying

  • ISRO - 4.5 lac (pay scale 15600 - 39000)
  • NTPC - about 6 lac (pay scale 24900-50500)
  • CANDLE - 5 lac (pay scale 20000-40500)


Do you call it peanuts? Compare it to the package that says Tata motors or TCS gives a recent graduate.
As for a senior IAS officer, he receives a take-home salary of around 90 thousand. Add living + travel + car + servants expenses and find out.

2. Hours of work
Do you understand 9 to 6 hours of work? ask someone who currently works in a multinational and you will realize how valuable it is. Govt. employees across India strictly follow it (for better or for worse is not yet clear), although you might be surprised to learn that around 70% of employees work hard while 30% are what you call typical "Babus". This is not true for states like Gujarat, where the government is much more productive. Any incompetence or laziness is not tolerated and I have seen it happen.

3. Power of Attorney
Have you entered a chamber of an IAS or IRS? you will see power on display (Yes, politicians exude power, but power interacts with the masses through government officials and they exercise it to their full capacity). But as you say, with great power comes great responsibility, corruption is this part of responsibility that went wrong.
Power also brings convenience, you would never have to be on a waiting list for a train (strictly speaking of IAS and IPS officers), restaurants won't keep you waiting (and sometimes won't even let you pay) and things like this. Power attracts everyone and acts as a great attraction to the government. Works.
Even for a normal government. Employed, the badge works in many places and certainly has some value in society.

4. Money
Until 10 years ago, government jobs were the door to money (and a lot). Of course, the way out was corruption and, in other words, the misuse of the power that the government gives you, but believe me, things have been changing. No one talks openly about money now and at least for the Gujarat state, you cannot be corrupt or you will be beaten badly. As for other states, at least it's not as open as it used to be. The corruption is there, but it is no longer attractive for a government job and I hope that 10 years from now, this will no longer be a reason to join the government.

5. Services
Not many organizations offer LTC (Leave Travel Concession) in which you travel to a destination of your choice on a fully paid trip.
Education is expensive and not everyone can have their child study at the ultra cheap Kendriya Vidyalaya (Central School) which in my opinion offers a decent education and in many cases one of the best in the city. It is available to you if you are a government employee (you would be spending a 5 lac donation if you were working privately trying to get your child admitted to a private school)
In most positions, your landline bill would be free ( which in my case extended to around 2000 a month). These are all indirect savings that you get while working at Govt.

Then. In my opinion, these are some of the points that characterize a government. lucrative work. Regarding point 2, see my answer here on Why is NASA so much more successful than ISRO? to understand a little more. The points mentioned in this answer are not mainly limited to ISRO, but to the majority of Govt. organizations in india.

To update :

I forgot to add 1 more point, which is very critical to going after a government. Job

6. Job security
plays a very important role. Once you enter the government, you are safe until your retirement and this is an important factor for people who want a peaceful and safe life, as you are not under pressure to perform.
Although, currently things have been changing and "Do Not Act" leads to a transfer if not to Shoot and believe me, a lot of transfers. I've seen people transferred 6 times in 5 years, but that's it. you will continue to receive a salary, you will continue to have a job and you will return home at 6. That closes the deal for many people.

Update 2:
Correctly pointed out by Mahadevan Vanchiswaran in the comments, 1 more thing that actually seals the deal that I forgot.

7. Pensions
While many USPs and government companies have abolished pensions, they are thriving very well in central government setups such as income tax and ministries.
Even after serving until retirement age, you still receive a salary (talk about paying for peanuts as mentioned in the original question). What's more exciting is that your pension is reviewed with pay reviews (in fact, my grandfather, who retired in 1997, currently receives 50% more of his pension than he used to receive in salary upon retirement . overtake that)
Some government entities also offer VRS (Voluntary Retirement Service - where you get all your salary up to your retirement age at one time), although I'm not really sure about the VRS rules and their current implementations. Name a private organization that can provide these luxuries even after you stop providing services.


This was my last update. I think 6 out of 7 points explains very well why people go crazy to get a job in the government. I don't want to consider point 4 that talks about corruption as a point that will attract people, but sadly, that is also one of the reasons even now!

On a moral note: I find it sad that people associate corruption with government jobs (yes, that's true to some extent, but as I tried to point out, there are a lot of other genuine things) and I hope it goes away. That part in itself is a stain on government jobs. As for other things too, a government. Employee known as Govt. The "servant" should really serve the people and not abuse the power conferred by the government. That is what I have learned from my father and that is how I see a government. job. :)

A. Let's say you start very young, between 21 and 24 years old:

  1. Even if you start with lower pay scales, it will still approach 40K. A 3% increase in base salary, DA raises twice a year, and a salary review every 10 years.
  2. By the time you hit 30, that will become more than 80,000 a month. In the meantime, you will enjoy life, which is meant for that exact purpose. You will enjoy the same life that you had in college, in school.
  3. The government pays for your medical expenses, including your children's education, and of course job security is a given.
  4. You will do a service to your country, you will earn money and you will enjoy your life.
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A. Let's say you start very young, between 21 and 24 years old:

  1. Even if you start with lower pay scales, it will still approach 40K. A 3% increase in base salary, DA raises twice a year, and a salary review every 10 years.
  2. By the time you hit 30, that will become more than 80,000 a month. In the meantime, you will enjoy life, which is meant for that exact purpose. You will enjoy the same life that you had in college, in school.
  3. The government pays for your medical expenses, including your children's education, and of course job security is a given.
  4. You will do a service to your country, earn money, and enjoy your time in the process.
  5. You are not going to make up these years. Are you sure you want to change it to enrich the multinationals? No amount of money returns the time spent.

B. Let's say you are a little late to the party, between 26 and 30:

  1. Most of you will want to start a family now. And that will bring responsibilities. I think you can do the math here.
  2. The government needs young blood to create an environment comparable to that of the private sector. Looking at the current scenario, the government pushes the Public-Private Partnership, most likely this is the last generation to experience government jobs in the way we know today. I believe that you can be the bridge between the two worlds and witness how it is built first hand.
  3. It's easier to get loans on government jobs, you can build your dream home, buy the car you liked in your college days, and you won't have to worry about missing payments. Personally, I am not a fan of loans. But hey, it's your life.

C. Some important facts and tips:

  • Not all government jobs are the same. Some have views like these:
  • And offices like this: this is my office by the way;)
  • Do not include yourself in the rat race of SSC, IBPS and RRB. Look carefully on the Internet for jobs that have a unique value. Strive for them. You will earn a little less money but a lot of happiness.
  • Not many public servants look for a higher paying job once they are selected. Use this to your advantage, instill a habit to slowly improve your skills, and visualize yourself landing a multitude of jobs in no time.

Disclaimer for internet trolls: these are purely my ideas and in no way am I against any other type of work. Please behave yourself in the comment section!

Thank you for your time and I will be happy to answer any questions.

Image Credits: My Phone Gallery.

Edit1: Wow! 100K views and more than 800 votes in favor. That too in a few days. I did not expect. Thank you all. I am humiliated. I have noticed that some people disagree with my perspective. It's okay as long as you maintain decorum.

Edit2: My answer was removed by quora moderation. I appealed and they returned the answer. Perhaps the reason was that I did not include the credits of the images. I have done it now.

Edit3: Thanks for 1.5K upvotes. Many people criticize the salary and benefits of a government job. Don't worry, just wait for the next pay commission recommendation in 2025.

Because when they go on strike, it becomes a problem that could destroy a politician in an election.

Almost all public sector employees are unionized, and those unions back politicians who, in kind, back the unions.

When unions go on strike in the public sector, the public often does not realize that the unions are screwing with the public. So the public sees this as a problem created by politicians and votes accordingly.

This puts massive pressure on politicians to do what the Union wants, to stop negative publicity.

Therefore, government workers unions inherently start automatically with the

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Because when they go on strike, it becomes a problem that could destroy a politician in an election.

Almost all public sector employees are unionized, and those unions back politicians who, in kind, back the unions.

When unions go on strike in the public sector, the public often does not realize that the unions are screwing with the public. So the public sees this as a problem created by politicians and votes accordingly.

This puts massive pressure on politicians to do what the Union wants, to stop negative publicity.

Therefore, government workers unions inherently automatically start with the upper hand.

And likewise, from the perspective of politicians, there is no problem in giving them whatever they want.

Take the public pension crisis that is happening in California. Did that start in the last 10 years, with all the politicians in office today? No. It started 30 years ago, when California politicians agreed to a massive long-term increase in compensation with public unions.

What cost did that have for those politicians? Any. Everybody was fine with all their union contracts. Now, 30 years later, debt is insane, and no one knows what to do, and the politicians who caused it have already left and retired.

On the other hand, in the private sector, there are no taxes that a company can simply force the public to pay. If prices go up, people stop buying the products and the business closes. Therefore, they cannot just accept large salaries and compensation packages, because they have to answer to clients.

That is why government compensation is now higher than private sector wages.

The private sector pays more is partially true. In entry-level jobs, the public sector pays more. At the middle career levels, salaries are somewhat comparable to the private sector which pays comparatively more in most cases. Only in top management is there an exponential difference in salaries.

A job in the private sector comes with its share of the workload and regardless of how much you earn, you will always feel underpaid. There is hardly any balance between work and life. The leaves are hard to come by. You are how much you earn.

Public sector jobs have job security. His life involves a lot of family time and time for personal life.

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The private sector pays more is partially true. In entry-level jobs, the public sector pays more. At the middle career levels, salaries are somewhat comparable to the private sector which pays comparatively more in most cases. Only in top management is there an exponential difference in salaries.

A job in the private sector comes with its share of the workload and regardless of how much you earn, you will always feel underpaid. There is hardly any balance between work and life. The leaves are hard to come by. You are how much you earn.

Public sector jobs have job security. Your life involves a lot of family time and time for personal use. The leaves are relatively easy to come by. Better medical facilities and accommodation. The payments are decent for a comfortable life. But these jobs don't value hard work as much as private jobs.

The word is clear. If you are the type of person who is very committed to your job and perform above average, private jobs will come in handy.

If you are an average artist who places great importance on a less stressful life and more time with family or hobbies, etc., then you will be better off with a job in the public sector.

In the United States, in the technology field, I would say start with the private sector because you will have higher salaries and more dynamic projects and learning experiences when you are young; then later in life you can move on to the public sector, where you can have a bigger impact and better benefits.

Public sector jobs tend to have stricter entry requirements and more formulated compensation structures; In the private sector, requirements and salaries are more fluid (and often more lucrative) for well-qualified candidates.

The army is a little different. You can join the military

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In the United States, in the technology field, I would say start with the private sector because you will have higher salaries and more dynamic projects and learning experiences when you are young; then later in life you can move on to the public sector, where you can have a bigger impact and better benefits.

Public sector jobs tend to have stricter entry requirements and more formulated compensation structures; In the private sector, requirements and salaries are more fluid (and often more lucrative) for well-qualified candidates.

The army is a little different. You can join the military at age 18 and retire earning 50% of your salary for the rest of your life at age 38, and they will pay for you to go to college while you are in the service or after. So you are 25-30 years old for a completely different career while you have a very good safety net. (unless I guess you get shot or blown up for those 20 years)

It is just strange, the salary of a government employee is paid by the government and it is the duty of every government. to pay the salary of its employees. It is the government. employees who do their job to keep the system up and running for all the services we enjoy as citizens. It begins with the collection of household waste, cleaning of roads and timely release of water to the extent of compliance with schemes such as MNREGA, health schemes and other emblematic programs for the citizens of this country. The success of all government-run development schemes. it is due to the duty of t

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It is just strange, the salary of a government employee is paid by the government and it is the duty of every government. to pay the salary of its employees. It is the government. employees who do their job to keep the system up and running for all the services we enjoy as citizens. It begins with the collection of household waste, cleaning of roads and timely release of water to the extent of compliance with schemes such as MNREGA, health schemes and other emblematic programs for the citizens of this country. The success of all government-run development schemes. It is due to the duty of the Government. Employees. Govt. it pays its employees with the income it generates from taxes and other means.

Very difficult to explain, there are very few companies compared to government companies that offer more remuneration.

I have many experiences and have also seen many of my friends when I finished my engineering in 2008 and have seen many private companies offer us 12k-20k salary when government companies give 30k more salary.

I know now it is also the same scenario where a new engineer receives a 20k pay in a private company (not a good ISO rated company like ril, adani, tata) while a government psu offers you a salary of more than 50k.

but the tricky part is when you

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