Niti Aayog: Salaries Lag Behind Rising Inflation Trends

According to Niti Aayog member Arvind Virmani, the real compensation for regular pay positions has not increased with inflation.

Salary Hike Update: According to Arvind Virmani, a member of NITI Aayog, employment is rising nationwide, but compensation for normal positions has not increased in line with inflation in seven years. According to him, skill development and employment are two sides of the same coin; having skills makes it simpler to find employment. He asserted that we must seize the potential presented by the world’s population and that raising the standard of education and training is crucial to doing so.

According to PLFS data, the worker-population ratio has been steadily rising over the past seven years, Arvind Virmani stated in an interview with PTI-Bhasha. This indicates that employment is growing faster than the population. Although it fluctuates as well, the tendency indicates that employment is growing. Claiming that employment is not growing in such a scenario is incorrect. The worker-population ratio for people of all ages rose from 34.7 percent in 2017–18 to 43.7 percent in 2023–24, according to the PLFS Annual Report 2023–24 (July–June).

“The real salary of casual workers has increased over the past seven years, and their condition has improved during this time,” he stated, referring to the PLFS remuneration data. This is supported by the evidence. “But a major problem is in the case of regular salary jobs,” Virmani stated. The real compensation in this category hasn’t gone up in line with inflation in seven years. He stated that, in my opinion, the primary cause of the compensation not rising in line with inflation is a lack of abilities.

This is significant, according to the Niti Aayog member, because rising productivity and real salaries follow skill development. This occurs both globally and in India. We mistakenly believe that our wages will rise as long as we continue to perform the same tasks. In a setting like this, skill development is crucial. Additionally, skill development is necessary for both new hires and those who are already employed. “Skill and job are two sides of the same coin,” he remarked. Having skills makes it easier to find employment.

“Reforms are needed everywhere for a developed India,” Virmani stated in response to another query. We ought to recognize and make use of the opportunity. We must capitalize on the opportunities presented by the global demographics.

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