The Hindu Business Line : Making `allowances'

The usage of the expression `salary', indicating the remuneration fixed for work done, is comparatively of recent origin only in the commercial history of the world. Initially, there were only slaves and serfs, whom the landlords `owned' in their estates and treated them as chattels. In later eras, when there was mobility of workers from place to place or from occupation to occupation, fixed `wages' came to be paid for specific quantum of work. Then, as commercial activities expanded and became more varied and complex, the need arose to include various elements in the payments made for work, and the sum total came to be referred to as `salary.' Thus, the connotation is much wider than that of `wages.'

In a fast-growing society, the criteria for determining the remuneration also had to change correspondingly. For instance, whenever hostilities broke out, men employed on the fronts were given extra pay — an incentive quite justified. Likewise, when men were posted in difficult terrains, particularly vulnerable to endemic diseases, additional allowances to the employees concerned were introduced — a necessity. A known example for this was `malaria' allowance given in certain regions in India. Similarly, when in an occupation involving regular or frequent travels, `travel allowance' had to be considered. Again, with `inflation,' accepted as inevitable in the path of economic growth, additional allowances to compensate for the rise in prices became absolutely necessary. This `dearness' allowance has become a universal adjunct in salary statements.

After the Second World War, the concept of `Welfare State' came to be accepted as a goal by all governments. In the light of this, not only the health and contentment of the employees, but those of their families also, became the concern of the employers. Comfortable dwelling, health-care, and education of the children of the workers constitute the base of a `welfare' government. Hence arise the house rent allowance, medical allowance, "education allowances", occasional "festival allowance", and so on.

Now, is an end to this trend in sight? It does not seem so. There is the news that the UP Government is granting "moustache allowance'' for some of their police personnel with trimmed moustaches. The arguments in favour of this allowance appear to be, one, moustache is the sign of manliness, and, two, certain styles go well with the valour and bravery of the security forces!

K. GOPALAN

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