Should There Be a Ceiling on Salaries of Top Management?

• Praveen Chakravarty and Sridhar Kundu discuss AI’s potential to increase pay disparity between top management and average employees.

• Chakravarty argues AI could exacerbate the pay gap, reducing the need for high-level skills.

• Kundu questions the World Bank’s report on wage inequality in India, arguing wage inequality is higher for salaried employees.

• He suggests a wage cut policy at the top level could reduce the average wage rate, but this is not a solution due to India’s lower average wage rate than many developing countries.

AI and Skill Enhancement in India

• AI restores the dignity of labour, not just skill enhancement.

• Companies like TCS are laying off senior employees due to salary disparities.

• AIPC chairman suggests policy suggestions to address pay disparity, including a 40-50 times pay ratio for publicly listed companies.

• The growth of employment opportunities in a sector should follow the same direction.

• The service sector in India has shown substantial growth, but lay-offs are surprising.