New pay-scale approved

---

FE Report
The government announced Wednesday the seventh pay scale for the public servants, brushing aside any possibility of inflationary pressure on the market.
It also announced a pay scale for judicial service for the first time, in which the maximum pay for the district judges will be equivalent to the basic monthly pay scale of grade III government servants.
The cabinet at its meeting with Prime Minister Sheikh Hasina in the chair gave approval to the new pay scale to be implemented in two phases, Finance Minister AMA Muhith told a press briefing at the Prime Minister's Office.
When asked, the finance minister said the government will try to implement the new pay scale ahead of ensuing Eid-ul-Azha.
Under the new pay scale, the minimum basic salary of
the government employees has been fixed at Tk 4,100, while the maximum monthly pay is Tk 40,000 (fixed) for secretaries and equivalent officials.
The minimum salary hike for the government employees will be not less than Tk 2,000, Mr Muhith said.
Besides, the government has also significantly raised the financial benefits for the pensioners, the finance minister said, and added that the monthly benefit has been enhanced by 40 per cent for pension holders aged below 65, while the hike would be 50 per cent for those above 65 years.
He also said the government for the first time has introduced pension benefit for the spouses of the deceased women government servants.
Besides, the government has introduced a new 'education assistance allowance' for government officials and employees, the maximum amount will be Tk 300, while the minimum Tk 200 per month.
The enhanced salary will also be applicable for teachers under MPO, Mr Muhith said.
He further said the government will introduce separate pay scale for teachers in future.
In the seventh pay scale, the government has increased the allowances for police personnel by 30 per cent.
Under the new pay scale, the health allowances have been increased to Tk 700 for the government servants, while other allowances by 30 per cent.
In the first phase of its implementation, the increased salaries would come into effect from July 01, 2009, while the enhanced allowances from July 01, 2010, Mr Muhith said.
The government will require Tk 62.22 billion annually for implementing the new pay scale, of which Tk 35.70 billion will be needed for financing the enhanced salary and Tk 26.52 billion for the increased allowances.
When his attention was drawn to the possibility of an inflationary effect on the market, the finance minister ruled out any price hike in the market due to the new pay scale.
"We have chosen a time for announcing the new pay scale when the prices of most essential commodities are showing a downward trend in the market," he said.
Prices of major essentials, including rice and edible oil remain steady, the finance minister said, adding: "We believe that there will be no price hike of any commodity following the announcement of the new pay scale."
The finance minister said the government has also formed a five-member committee, headed by him, to look into any discrepancy in the new pay scale.
"Usually, there remain some inconsistencies in the fixation of new salaries and allowances… this committee will look into the matter," Mr Muhith said.
He said the cabinet approved the new pay scale for government servants after reviewing the reports of the Seventh National Pay Commission and the secretary-level committee, headed by the Cabinet Secretary M Abdul Aziz.
Cabinet Secretary M A Aziz, Finance Secretary Dr M Tareq and Prime Minister's Deputy Press Secretary Mahbubul Haque Shakil were present at the press conference.