7th NPC submits report on new pay hikes
Friday, 24 April 2009
FE Report
The seventh National Pay Commission (NPC) submitted Thursday its report on new pay hikes, which also recommended introduction of dearness allowance (DA) each year for the public servants based on the average annual inflation in future.
The 13-member Commission, headed by a former finance Secretary M. Mustafizur Rahman, handed over its recommendations to Finance Minister AMA Muhith at the latter's office.
Both the NPC chairman and finance minister, however, did not elaborate on the pay hikes that have been proposed in the report for the government officials and employees.
"They (NPC) have just made their recommendations. We are yet to get into details," Mr Muhith told newsmen.
An internal committee will be formed to review the NPC's recommendations, he added.
Responding to a query, Mr Muhith said: "Although the Commission has suggested implementation of its recommendations at a time; it can't be possible because of our resources constraint."
When asked, the minister said an additional amount equal to nearly 10 per cent of the government's revenue expenditures could be required for implementing the proposed seventh pay scale.
The NPC chairman told the newsmen: "We have suggested that the government should provide a DA to its officials and officials every year on the basis of average annual rate of inflation."
The Commission has also recommended payment of income-tax by the government servants themselves so that their personal incomes, if any, other than the salaries are reflected in the tax-returns, Mr Mustafizur Rahman said.
Apart from hikes in pay scales, the NPC has also proposed enhancement of existing allowances for the beneficiaries concerned.
Replying to a question on whether or not the Commission has recommended a separate pay scale for any government agency or department, the NPC head said: "We have proposed uniform pay hikes for officials of all the government and autonomous bodies."
About the sources of fund, Mr Mustafizur Rahman said the Commission has suggested that the government should widen its tax net and review land prices to generate more revenue for implementing the proposed pay scale.
He, however, said the NPC has made its recommendations, taking the rate of annual inflation, demands of the public servants and the government's resource availability into account.
Besides, it has finalised the reports after consulting all the stakeholders, the NPC chairman added.
"The caretaker government constituted the seventh NPC on October 28, 2008 to prepare an appropriate pay scale for its servants …We have submitted our reports within the stipulated timeframe of six months," he said.
The seventh National Pay Commission (NPC) submitted Thursday its report on new pay hikes, which also recommended introduction of dearness allowance (DA) each year for the public servants based on the average annual inflation in future.
The 13-member Commission, headed by a former finance Secretary M. Mustafizur Rahman, handed over its recommendations to Finance Minister AMA Muhith at the latter's office.
Both the NPC chairman and finance minister, however, did not elaborate on the pay hikes that have been proposed in the report for the government officials and employees.
"They (NPC) have just made their recommendations. We are yet to get into details," Mr Muhith told newsmen.
An internal committee will be formed to review the NPC's recommendations, he added.
Responding to a query, Mr Muhith said: "Although the Commission has suggested implementation of its recommendations at a time; it can't be possible because of our resources constraint."
When asked, the minister said an additional amount equal to nearly 10 per cent of the government's revenue expenditures could be required for implementing the proposed seventh pay scale.
The NPC chairman told the newsmen: "We have suggested that the government should provide a DA to its officials and officials every year on the basis of average annual rate of inflation."
The Commission has also recommended payment of income-tax by the government servants themselves so that their personal incomes, if any, other than the salaries are reflected in the tax-returns, Mr Mustafizur Rahman said.
Apart from hikes in pay scales, the NPC has also proposed enhancement of existing allowances for the beneficiaries concerned.
Replying to a question on whether or not the Commission has recommended a separate pay scale for any government agency or department, the NPC head said: "We have proposed uniform pay hikes for officials of all the government and autonomous bodies."
About the sources of fund, Mr Mustafizur Rahman said the Commission has suggested that the government should widen its tax net and review land prices to generate more revenue for implementing the proposed pay scale.
He, however, said the NPC has made its recommendations, taking the rate of annual inflation, demands of the public servants and the government's resource availability into account.
Besides, it has finalised the reports after consulting all the stakeholders, the NPC chairman added.
"The caretaker government constituted the seventh NPC on October 28, 2008 to prepare an appropriate pay scale for its servants …We have submitted our reports within the stipulated timeframe of six months," he said.