Government employees may have their monthly salary doubled under a new pay scale proposed Sunday. In the 16-grade pay scale, the highest basic pay is Tk 80,000 and the lowest Tk 8,200.
However, the Pay and Services Commission set two special grades for top bosses in the bureaucracy.
As proposed, a senior secretary would draw Tk 88,000 as monthly salary while the cabinet secretary and the principal secretary will get Tk 100,000 each under the special grades.
Commission chief Mohammad Farashuddin submitted its report to Finance Minister AMA Muhith, also recommending different other packages of pay and perks for the employees.
"The new pay scale will be effective from July 1, 2015," said the minister while receiving the report.
Farashuddin, an ex-governor of the central bank, said the commission proposed up to a hundred percent increase in the basic pay at the lowest and the highest levels with the cardinal aim of infusing dynamism into the public administration and attracting talents to government service.
The commission has recommended a reduction in salary tiers from 20 to 16.
The government had constituted the 17-member body on Nov 24 last year to revise the pay packages for its 1.3 million employees. It had initially been told to report its recommendations in six months, but the time was later extended by another six.
The last Pay Commission was formed in 2007 during the post-1/11 caretaker regime, and the last time public servants got a hike was on Jul 1, 2009. At the time, Tk 40,000 was highest basic pay and Tk 4,100 lowest.
The previous pay scale was meant for four years. The new one, however, will expire in six years.
The proposals were worked out on the basis of the estimated expenses of a six-member family, with education and health fees for two children and sustenance of the employee's parents.
Public servants are already entitled to 20 per cent dearness allowance, effective since July 2013.
The commission chief said that the new scale would increase government expenses by 63.7 per cent.
In this context, the finance minister said the government has resources to foot the bill for the higher staff salary.
The eighth pay commission suggested merger of the 8th and the 9th grades into 8th grade with a basic pay of Tk 25,000 -- more than double the amount of Tk 11,000 in the seventh pay scale.
This grade is applicable for the entry-level BCS cadres.
In its report the commission recommended that a separate pay structure could be framed at the Bangladesh Bank.
"But the grades and scales would have to be similar with the national pay scale," it said.
Dr Farashuddin said the budget allocation for the government expenditure will increase 14.5 per cent if the pay scale is fully implemented.
The pay scale will come into effect from the first July 2015, after review by a cabinet committee to be headed by the cabinet secretary.
Pension for retired staff members has been proposed to be raised to 90 per cent.
The commission chairman along with its members and high officials of the ministry of finance, including senior secretary the finance division Mahbub Ahmed, were present during the submission of the Pay Commission report.
Service period for voluntary retirement has been cut to 20 years from the existing 25 years.
"The main objectives of the pay hike of the civil servants are providing incentives to the efficient officials and employees, curbing corruption and infusing dynamism into the public administration," Dr Farashuddin said while submitting the report.
He said the public servants would be able to play a much greater role in accelerating country's socioeconomic development if talented people are given preference in government official recruitment.
"And adequate salaries and allowances should be given to them," he said.
He expressed the hope that the incentives would help enhance their efficiency, honesty and productivity in addition to increasing transparency in their promotion.
The commission suggested many attractive incentives in the form of non-cash benefits like accommodation facility, and mandatory insurance.
The chairman of the commission said a comprehensive health insurance for every government servant has been proposed at Tk 400 as general health premium and Tk 100 life premium.
It recommended a life insurance of up to Tk 500,000 for the government servants, which, according to the commission, will help the insurance industry in the country flourish.
The commission suggested the setting up of a bank for the government employees and selling the state-owned land at Dainik Bangla crossing, owned by the government Welfare Board, to mobilise resources for this purpose.
It proposed reorganising the existing Welfare Fund into a 'Samriddhi Sopan Bank' with a paid-up capital of Tk 4.0 billion by selling its 20-25-katha land near the Dainik Bangla crossing in the city.
Besides, out of the surplus funds, a 500-bed cardiac hospital should be set up.
The chairman of the commission said the government officials and employees could get flats on a 60:40 ratio on hire-purchase basis restructuring the old government buildings or on Khas or government lands.
He also said the government could provide loan equivalent to basic salaries of up to 50 months on bank rates for purchasing five-to ten-katha land for building houses to a group of 10 to 20 public servants.
In his reaction over the recommendations, Mr Muhith said the new pay scale has some fundamental issues and need to be discussed.
"I am pleased to receive such a report. It will be implemented; we are fortunate to have this chance."
He said the government would now form an implementation committee after taking approval from the cabinet and implementation of the new pay structure would start on July 1, 2015.
Asked whether there would be any inflationary impact once the new pay scale is implemented, the finance minister replied in the negative saying that the hike proposed is proportionate to the resources available.
The new pay scale also took into consideration the cumulative inflation since 2009, at about 63 per cent, in framing the pay structure.
It proposed to withdraw the Efficiency Bar (EB) as well as dissolving Selection Grade and timescale for promotion.
The commission proposed to give annual increment at a 5.0 per cent aggregate rate from the 4th to 16th grade.
It recommended discontinuing with the Deputation System cancelling all the allowances about it.
The commission put forward a recommendation for rationalising some of the allowances, including the house rents, in four tiers from the existing three for Dhaka city, then Chittagong and other divisional cities, then Narayanganj, Cox's Bazar and Savar and then other categories, including district towns.
The Pay and Services Commission also recommended distribution of rice procured among of the members of village police at a very low price, implementation of the new pay scale at the MPO-enlisted schools six months after its formal implementation, discontinuation of separate pay structure at the losing concerns, autonomous and other government institutions.
He further said the government officials from the Grade III and above could be entitled to get car loans worth Tk 2.5 million on trial basis for one year. And if it seems to be successful, then it could be applied to the Grade IV officials.
The same method could be applied to the same-rank officials of the autonomous and semiautonomous bodies, but the expenditure of maintenance of vehicles would have to be borne from their own sources.
The commission also recommended making plans before bringing reforms in government jobs, considering the just demands of the non-cadre government officials and employees, preparing an organogram for those who remained at the same post for their whole life.
jasimharoon@yahoo.com