Government for phased rollout of pay scale

The government is likely to begin implementing a new national pay scale from the next fiscal year by introducing the revised basic salary structure in full, while housing and other allowances are expected to be rolled out in phases over the following two years.

According to officials familiar with the process, the move follows guidance from the government's highest authority to implement the new pay scale gradually in view of the significant fiscal implications.

Under the proposed approach, the revised basic pay would be introduced in the first year, while house rent and other allowances under the new pay structure would be implemented in two subsequent phases during the second and third years.

A senior Finance Division official told The Financial Express that the previous pay scale was introduced in 2015 in a similar phased manner.

Under the Eighth National Pay Scale, revised basic salaries took effect on 1 July 2015, while revised allowances were implemented the following year.

He said there is considerable pressure from public-sector employees to follow a similar approach for the next pay scale.

"The government is likely to follow the same model this time as well," the official said.

He added that the modalities for implementing the new pay scale are expected to be finalised at a meeting of the Secretaries Committee on Wednesday.

Another official said some existing benefits would be withdrawn once the new pay structure comes into effect. As a result, even a substantial increase in basic pay may not immediately translate into a proportionate rise in overall earnings for many employees.

In January this year, the Pay Commission, headed by former Finance Secretary Zakir Ahmed Khan, recommended salary increases of up to 142 per cent for public servants.

The commission proposed raising the minimum basic salary from Tk 8,250 to Tk 20,000 and the highest basic salary from Tk 78,000 to Tk 160,000.

While submitting the report, Mr Khan said approximately Tk 1.06 trillion would be required annually to fully implement the recommended pay scale.

In the proposed budget for the next fiscal year, the government has allocated around Tk 440 billion for the partial implementation of the new pay structure.

syful-islam@outlook.com