Determination of Academic Pay in Universities and Colleges: An International Perspective

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1 Report of the Research study on Determination of Academic Pay in Universities and Colleges: An International Perspective P. Geetha Rani Department of Education Finance NATIONAL UNIVERSITY OF EDUCATIONAL PLANNING AND ADMINISTRATION 17-B, Sri Aurobindo Marg New Delhi

2 Acknowledgment I thank Prof. Ved Prakash, the honorable Vice Chancellor of this university for his overall support in pursuing this research project. I am also grateful to Prof. Sudip Banerjee Chancellor of this university who inculcated a number of issues and inspirational in pursuing this study. I also would like to thank my senior colleagues Prof. Sudesh Mukhopadhyay, Prof. Sudhanshu Bhushan, Dr. A.K. Singh and Dr. Pranti Panda for their comments and suggestions at the early stages of the study. I take this opportunity to thank my project team members Ms. Jeya Sinha, Mr. Irfan Khan and Ms. Ishrat Jehan (Research Assistants), Ms Puja and Mr Rahlu Joshi (Data Entry Operators), library staffs and administrative authorities of this university who extended their invaluable support for the successful completion of this project. Dr. P. Geetha Rani

3 Preface Teacher compensation varies across and within countries in the academic profession. Differences in teacher pay structures arise broadly on account of the differences in the labour market and the systems of higher education in various countries. Pay is one of many important factors which influence the decision to enter and remain in academe and to move between academic institutions or/and intra-national or/and international movement. In India, the University Grants Commission (UGC) constitutes the Pay Commissions, which is a sub-commission under the Central Pay Commission; suggests the scales of pay for teachers in the colleges and universities. This UGC Pay Commission determines the scales of pay of teachers in universities and colleges following the broad parameters of the Central Pay Commission. The current scales of pay are based on the Fifth Pay Commission implemented in 1997 and UGC Pay Commission of The recently constituted Pay Commission in 2007 is the Sixth Pay Commission in the series. Subsequently, a sub-committee under UGC has been constituted to suggest the scale of pay of teachers in colleges and universities. The present study is an attempt to focus on various methods or approaches adopted in determining the teacher compensation or salary levels of teachers in the higher education sector with special reference to United Kingdom.

4 Determination of Academic Pay in Universities and Colleges: An International Perspective CONTENTS Part I: Academic Pay Determination in United Kingdom Introduction Data and Methodology Pay Determination under the New Framework Agreement Pay Determination under Sample Universities Impact of the New Framework Summing Up Part II: Comparison Comparison of the New Framework with Previous Pay Determination Mechanism Problems of Previous Pay determination framework Similarity to the Indian Context Part III: Salary Relatively Comparing Average Academic Salary with Similar Professionals International Academic Salary Comparisons Implications for India Reference Appendix

5 Index on Tables Table 1: Table 2: Table 3: Table 4: Table 5: All Higher Education Students under P.G and U.G. (Part/Full time) in UK Academic Staff at UK Higher Education Institutions by Grade Full time Academic Staff as a Per cent of Total Academic Staff at UK Higher Education Institutions by Grade The Single Pay Spine for UK Universities: A Framework Agreement Single Pay Spine * Annual Salary of Teachers in Select Universities in the United Kingdom in (in PPP US $) Table 6: Salary Scale of Lecturers and Readers in Select Pre 1992 Universities in UK Table 7: Salary Scale of Lecturers and Readers in Select Post 1992 Universities in UK Table 8: Salary Grade and Spine Points of Professors in Select Pre 1992 Universities in UK Table 9: Spine Points Summary of Grade 10/ Academic 5 Professorial grade (ranked by minimum point) in the post 1992 Universities in UK Table 10: Table 11: Table 12: Table 13: Table 14: Academic Pay Structures by Designation, by Grade and by Career Path in pre 1992, post-1992 and New Framework Agreement in UK Average salary of full-time academic staff by grade and location, UK, 1995/ /03 (constant in 2002) in Annual Academic Salary by Grades of Teachers in Select Universities in UK in (in PPP $USD) Annual Salary of Academics by Grade in Select Universities in 2002 in the United Kingdom (in PPP $USD) Annual Salary of Academics by Grade in pre1992 and post 1992 universities in 2002 in UK (in PPP $USD)

6 Table 15: Table 16: Full-time Average Annual Salary and Academic Gender Pay Gap for Academic Professionals in the UK during to Change in Real Average Weekly Earnings by Profession during in United Kingdom (1994=100) Table 17: The Salary of Lawyers and Academics in UK in (in PPP US$) Table 18: Table 19: Table 20: Ratio of Average Pay of Full-time Academic Professionals to Per capita GDP in the UK to Annual Salaries by Country (Bottom of scale for each grade) (in PPP US$) Annual Salaries by Country (Bottom of Scale for each grade) in (in PPP US$) Appendix Table A1: Difference between Pre 1992 and Post 1992 Universities in UK

7 Index on Charts Chart 1: Growth of Income by Source of Higher Education Institutions from to in UK ( =100) Chart 2: Chart 3: Chart 4: Chart 5: Chart 6: Chart 7: Growth of Expenditure by Category of Higher Education Institutions from to in UK ( =100) Trends in Earnings of pre-1992 University Academics Relative to Non-Manual Averages in UK Real change in average salaries of full-time academic staff in Pre-92 universities in United Kingdom (1995/96=100) Real change in average salaries of full-time academic staff in Post-92 universities in United Kingdom (1995/96 =100) Change in Real Average Salary and Per Capita GDP during to in UK ( = 100) Overall Average Salary of Academics (including bottom of professorial scale) from to ((in PPP US$)

8 Index on Figures Figure 1: Figure 2: Figure 3: A Model Pay Structure in UK by Joint Negotiating Committee for Higher Education Staff Academic Pay Structures by Designation by Grade and by Spinal Points in Pre-992, New Framework Agreement and Post-1992 Universities in UK The Existing Grade structure in Universities and Colleges in India

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