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Pay Commission to review govt employees' salaries

FE Report | Tuesday, 10 June 2008


Finance Adviser Mirza Azizul Islam Monday in his budget address proposed to form a Pay Commission to review and recommend a revised pay structure for the employees of the government and autonomous bodies at the beginning of the next fiscal year.

"In view of the rise in cost of living, I propose to constitute a Pay Commission to review and recommend a revised pay structure of the employees of government and autonomous bodies at the beginning of the next fiscal year," he said.

The people having fixed income in the country are facing hardship due to high inflation arising from the abnormal price-spikes in both international and domestic markets during recent times. In particular, the existing pay structure of the low-paid government employees is not consistent with their cost of living, Mirza added.

He also said the government employees and the pensioners will be given 20 per cent dearness allowance from July 2008 as an interim relief.

In the case of pensioners, the amount of dearness allowance will be determined on the basis of their uncommuted pension, he said.

Finance Adviser also said the government has decided to provide full festival allowance to the pensioners similar to that of government employees.