The paper looks at the trends in nominal and real salaries of the FederalGovernment employees over the period 1990-2006. It examines the structural defects in the existing salary structure and the anomalies in the allowances structure to show that appropriate remuneration for the civil servants requires serious and urgent consideration. The widening gap in the emoluments of government employees versus the public sector corporations and private sector employees has a strong bearing on the motivation and ability to work. The paper makes serious recommendations to overhaul the existing structure of salaries and perks to make the public sector employment competitive and cost-effective.
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