Increase in pensioners' benefit recommended
Friday, 24 July 2009
Sheikh Shahariar Zaman
The secretaries' committee formed for reviewing the pay-scale has recommended to increase benefits for pensioners, said finance ministry sources.
The committee suggested 50 per cent pension hike for the pensioners above 60 years old, and 40 per cent for over 57, said a finance ministry official. At present they get 20 per cent more than their pensions as dearness allowance.
The committee will also put forward recommendation to hike medical allowance for the pensioners to Tk 1,000 from Tk 500, he said.
The revised pay-scale is expected to be placed before the cabinet on its July 27 meeting for final approval.
Under the new pay-scale retirees will get 80 per cent of their basics as pension. "They can surrender the entire pension or half of it as gratuity in return of certain benefits," said the official.
A retiree will get 250 times of the surrendered pension for the first 50 per cent, he said. "If the total pension amount is Tk 1,000, and if a retiree surrenders Tk 500, he will get 250 times of the surrendered amount, which is Tk 1,25,000," he explained. If he surrenders the whole amount, for the next 50 per cent, he will get 125 times.
The finance minister in his budget speech said the new pay-scale will be implemented in phases, and it will be effective from July 1.
A block allocation of Tk 31 billion has been earmarked for the new pay-scale for the current fiscal, and the complete compensation package will be implemented from next fiscal.
"In this fiscal, only incremental basics with existing allowance will be given, and incremental allowance will be given from next fiscal," said another finance ministry official.
The pay committee also recommended giving education allowance of Tk 300 for two children and Tk 200 for one children, he said. High officials will not get the allowance, only employees of grade 10 to 20 will get it. Hike in medical allowance to Tk 700 from Tk 500 is also proposed by the committee.
The cabinet secretary, army generals and equivalent officials will get additional Tk 5,000, whereas the principal secretary, lieutenant generals and equivalent officials will get Tk 2,500, and secretaries, major generals and equivalent officials will get Tk 1,000 under the new pay-scale, he added.
The National Pay Commission was formed in August 2008, and it submitted its report to the government on April 23 this year. The commission proposed the maximum salary at Tk 45,000, and minimum at Tk 4,000. However, the secretaries' committee lowered the maximum to Tk 40,000, and increased the minimum to Tk 4,100.
Cabinet secretary, finance secretary, law secretary, defence secretary, establishment secretary, secretary to the Prime Minister's Office and member (operations) of the Planning Commission are the members of the committee.
The secretaries' committee formed for reviewing the pay-scale has recommended to increase benefits for pensioners, said finance ministry sources.
The committee suggested 50 per cent pension hike for the pensioners above 60 years old, and 40 per cent for over 57, said a finance ministry official. At present they get 20 per cent more than their pensions as dearness allowance.
The committee will also put forward recommendation to hike medical allowance for the pensioners to Tk 1,000 from Tk 500, he said.
The revised pay-scale is expected to be placed before the cabinet on its July 27 meeting for final approval.
Under the new pay-scale retirees will get 80 per cent of their basics as pension. "They can surrender the entire pension or half of it as gratuity in return of certain benefits," said the official.
A retiree will get 250 times of the surrendered pension for the first 50 per cent, he said. "If the total pension amount is Tk 1,000, and if a retiree surrenders Tk 500, he will get 250 times of the surrendered amount, which is Tk 1,25,000," he explained. If he surrenders the whole amount, for the next 50 per cent, he will get 125 times.
The finance minister in his budget speech said the new pay-scale will be implemented in phases, and it will be effective from July 1.
A block allocation of Tk 31 billion has been earmarked for the new pay-scale for the current fiscal, and the complete compensation package will be implemented from next fiscal.
"In this fiscal, only incremental basics with existing allowance will be given, and incremental allowance will be given from next fiscal," said another finance ministry official.
The pay committee also recommended giving education allowance of Tk 300 for two children and Tk 200 for one children, he said. High officials will not get the allowance, only employees of grade 10 to 20 will get it. Hike in medical allowance to Tk 700 from Tk 500 is also proposed by the committee.
The cabinet secretary, army generals and equivalent officials will get additional Tk 5,000, whereas the principal secretary, lieutenant generals and equivalent officials will get Tk 2,500, and secretaries, major generals and equivalent officials will get Tk 1,000 under the new pay-scale, he added.
The National Pay Commission was formed in August 2008, and it submitted its report to the government on April 23 this year. The commission proposed the maximum salary at Tk 45,000, and minimum at Tk 4,000. However, the secretaries' committee lowered the maximum to Tk 40,000, and increased the minimum to Tk 4,100.
Cabinet secretary, finance secretary, law secretary, defence secretary, establishment secretary, secretary to the Prime Minister's Office and member (operations) of the Planning Commission are the members of the committee.