Spl financial benefit for govt employees likely
Sunday, 16 September 2007
Shakhawat Hossain
The caretaker government (CG) has taken a move to award special financial benefit to its officials and employees to compensate for the rise in the cost of living, official sources said.
A committee headed by an additional secretary of the Ministry of Finance (MOF) has already been formed to figure out a rational amount of such special financial benefit.
The advisory committee that also includes representatives from the chief adviser's office, ministry of establishment, ministry of defence and the MoF held its first meeting Thursday last, sources added.
The rate of inflation on point-to-point basis crossed the double digit mark in July last.
The CG had projected the annual rate of inflation at below 7 per cent for the current fiscal.
But experts and economists have already expressed doubt about the government projection.
They feared that the prevailing inflation would continue to go up in the coming months due to the hike in the prices of commodities in the international market and sluggish local economic trend.
The committee discussed, according to the meeting agenda, different indicators like the rate of inflation, country's per capita income, cost of living and the price trend of commodities in the international market.
It also reviewed steps taken in the neighbouring countries to help the government employees overcome price pressure.
The committee that will meet again discussed the recommendations on dearness allowance suggested by the national pay commission that was formed in 2004.
The immediate past political government approved a new pay scale with a 53.33 percent salary hike for the civil servants and defence officials in the highest grade and 60 percent in the lowest in 2005.
Though the new pay scale was approved May 16, 2005 it was given retrospective effect from January 1, 2005.
The new pay scale was implemented in three phases.
In the first phase, the employees got 75 per cent of their enhanced basic salary in June and the remaining basic pay in July in the second phase.
They got house rent, medical and conveyance allowances and other benefits from July 1, 2006 in the third phase.
The pay hike had cost the government Tk 39.75 billion. In the first year, the government needed Tk 5.67 billion, Tk 16.63 in the next fiscal year and Tk 17.65 billion in the third year.
Some 1.55 million including 8,28,000 civil servants, 1,40,000 defence personnel and 5,60,000 teachers on the Monthly Payment Order (MPO) were benefited by the last pay scale.
The caretaker government (CG) has taken a move to award special financial benefit to its officials and employees to compensate for the rise in the cost of living, official sources said.
A committee headed by an additional secretary of the Ministry of Finance (MOF) has already been formed to figure out a rational amount of such special financial benefit.
The advisory committee that also includes representatives from the chief adviser's office, ministry of establishment, ministry of defence and the MoF held its first meeting Thursday last, sources added.
The rate of inflation on point-to-point basis crossed the double digit mark in July last.
The CG had projected the annual rate of inflation at below 7 per cent for the current fiscal.
But experts and economists have already expressed doubt about the government projection.
They feared that the prevailing inflation would continue to go up in the coming months due to the hike in the prices of commodities in the international market and sluggish local economic trend.
The committee discussed, according to the meeting agenda, different indicators like the rate of inflation, country's per capita income, cost of living and the price trend of commodities in the international market.
It also reviewed steps taken in the neighbouring countries to help the government employees overcome price pressure.
The committee that will meet again discussed the recommendations on dearness allowance suggested by the national pay commission that was formed in 2004.
The immediate past political government approved a new pay scale with a 53.33 percent salary hike for the civil servants and defence officials in the highest grade and 60 percent in the lowest in 2005.
Though the new pay scale was approved May 16, 2005 it was given retrospective effect from January 1, 2005.
The new pay scale was implemented in three phases.
In the first phase, the employees got 75 per cent of their enhanced basic salary in June and the remaining basic pay in July in the second phase.
They got house rent, medical and conveyance allowances and other benefits from July 1, 2006 in the third phase.
The pay hike had cost the government Tk 39.75 billion. In the first year, the government needed Tk 5.67 billion, Tk 16.63 in the next fiscal year and Tk 17.65 billion in the third year.
Some 1.55 million including 8,28,000 civil servants, 1,40,000 defence personnel and 5,60,000 teachers on the Monthly Payment Order (MPO) were benefited by the last pay scale.