Govt forms pay commission for public servants

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FE Report brThe caretaker government Sunday formed a national pay commission 2008 to raise the wages of more than one million of its employees who have been hard hit by soaring prices. brA finance ministry order Sunday said ex-finance secretary M Mustafizur Rahman would head the 13-member commission, which includes four former secretaries and three vice-chancellors of public universities. brThe commission would examine monthly expenses of a four-member family, health and educational cost of two children, utility and service bills and the country's annual economic and revenue growth to make suggestions on pay-hikes, the order said.brIt will have to finalise its report within six months after operation, the order said. brFor the first time in the country's history, the commission has also been asked to formulate a mechanism to adjust government salaries at par with annual inflation.brSince independence, salaries of the government's nearly 1.2 million officials have never been adjusted with annual inflation despite pledges by most of the past administrations. br The commission was created in line with the pledge made by finance and planning adviser Mirza Azizul Islam in his budget speech last June. brThe adviser had announced 20 per cent dearness allowance in the current fiscal budget as an interim measure to help the officials to cope with rising prices of food, commodities, utility services and house rents. brFood prices, including the main staple rice, have nearly doubled since middle of last year due to huge domestic production shortfalls and curbs on exports by major producers. brPrice inflation hit double digit in July 2007 and remained at the record level since then owning to the series of natural disasters and global price hikes.brThe caretaker government has set aside a fund of nearly Tk 30 billion to implement the 20 per cent pay-hike, starting from July this year.brThe previous Bangladesh Nationalist Party (BNP)-led government set the country's last pay commission in 2004 and implemented a 53-60 per cent pay-rise from the next year.