Govt employees set for 105% raise in Pay Commission's report to CA

Recommendations

• 140% salary increase for the 20th grade, 80% for the 1st grade
• Annual increment to stay at 5%
• Car loan and maintenance allowances to remain unchanged
• Special allowances for teachers, researchers, doctors, scientists and engineers
• Formation of Service Commission to remove existing anomalies in government service

The interim government-formed National Pay Commission is set to submit its report to Chief Adviser Muhammad Yunus today (21 January), recommending an average 105% increase in salaries for government employees.

Salaries and allowances for employees in the lowest 20th grade could be raised by 140%, increasing from Tk18,000 to Tk42,000. For officers in the first grade, the commission is expected to recommend an 80% increase, raising pay from Tk78,000 to Tk140,000.

A member of the Pay Commission, speaking to The Business Standard yesterday on condition of anonymity, said the commission's final meeting agreed on an average salary increase of 105%. 

Within this, a 140% hike for 20th-grade employees and an 80% increase for first-grade officers will be recommended, he added.

However, teachers, researchers, doctors, scientists and engineers are expected to receive special allowances. While officers within the same grade will have equal basic pay, the commission has proposed additional allowances for these professions.

Finance Adviser Salehuddin Ahmed yesterday told reporters that the report, containing recommendations on new pay scales and allowances for government officials and employees, would be formally handed over to the chief adviser at 5pm today. 

He said he would be present at the handover but declined to comment on the details ahead of the formal submission.

Increments, allowances

Another commission member said the new pay structure would recommend an annual increment of 5% of basic pay for government employees. 

The current pay structure also provides for increments at the same rate. However, due to high inflation, the current government has continued to provide special incentives to public servants this fiscal year, following a similar approach taken during the final two years of the Awami League government.

At present, officials from deputy secretary to additional secretary receive an interest-free loan of Tk30 lakh for vehicle purchases, along with a monthly car maintenance allowance of Tk50,000. 

Although the Bangladesh Administrative Service Association proposed raising the loan amount to Tk45 lakh and the monthly maintenance allowance to Tk75,000, the commission did not accept the proposal.

On this, the commission member said the benefit is enjoyed by a small number of high-paid officials. "As the existing facilities are considered adequate, the recommendation is to keep them unchanged," the member added.

The Pay Commission report will also recommend the formation of a Service Commission, according to the official. The move is aimed at addressing certain inconsistencies among public service employees that fall outside the scope of the pay commission. 

Before submitting the report to the chief adviser, the commission will hold a final meeting at 2pm today to collect signatures from its members and finalise the document.

In the original budget for the current fiscal year, around Tk80,000 crore was allocated for salaries and allowances of government employees. After receiving the pay commission's recommendations, an additional Tk22,000 crore has been allocated in the revised budget to allow for partial implementation from January.

However, a senior official at the Finance Division told The Business Standard that there is pressure from major political parties to ensure that the interim government does not implement the new pay structure.

According to the official, the parties argue that a decision of this importance should be left to an elected political government.

Govt will not implement now

Meanwhile, Finance Adviser Salehuddin yesterday said the government will not immediately implement the recommendations of the Pay Commission once its report is submitted, as the proposals will first be reviewed by relevant committees and undergo scrutiny before any final decision is taken by the government.

Speaking to journalists at the Secretariat, the adviser said the verification and review process usually takes three to four months, indicating that a new pay structure would not come into effect straight away.

Salehuddin further said he expected government employees to be largely satisfied with the recommendations, as the commission had given priority to the interests of public servants while preparing its proposals.

Addressing concerns that a possible salary increase could negatively affect the market, he said there would be no adverse impact. "The government is placing emphasis on strengthening the supply side, which will help keep the market stable," he said.

Asked whether a pay rise could have political implications ahead of the upcoming national election, he rejected the suggestion, saying the issue had no link to elections.

Dr Salehuddin described the work of the National Pay Commission as exemplary, saying its members had consulted a wide range of stakeholders. He said discussions were held with government employees, teachers, students, various professional groups, retired pensioners and senior citizens.

He acknowledged that it would not be possible to meet all demands in full, but said the needs and expectations of different groups would be reflected in the recommendations as far as possible.