Pay hike to raise govt expenses

The government will need around Tk 14,500 crore more in the next fiscal year for implementing the first phase of the new pay scale in line with the recommendations by the review committee on the National Pay Commission, say finance ministry officials.

Of the amount, around Tk 10,000 crore will be required to pay salaries of civil servants and the rest for defence staffs and teachers getting monthly pay order (MPO).

In the budget for the current fiscal year, Tk 19,040 crore has been allocated for paying salaries of civil servants, defence staffs and teachers receiving MPO.

The committee led by Cabinet Secretary Musharraf Hossain Bhuiyan might submit its report to the finance minister by this week, and suggest bringing minor changes to the commission's recommendations, a finance ministry official told this correspondent.

It might propose keeping unchanged basic salaries suggested by the commission for all grades except for three or four, said the official.

The secretary-level committee was formed on December 31 last year to review the reports of the National Pay Commission led by Mohammed Farashuddin and the pay commission for the armed forces division.

The National Pay Commission handed over its report to Finance Minister AMA Muhith on December 21 while the one for the armed forces submitted its report a couple of days later.

Contacted, Musharraf said the committee's report was almost ready and would be submitted to the finance minister soon. The ministry would then place it before the cabinet.

Sources said the committee might advise the government to implement its recommendations in phases.

In the first phase to be implemented in July of the next fiscal year, basic salaries and allowances of all civil servants, defence staffs and teachers getting MPO would be increased.

According to the commission report, for full implementation of its recommendations, the government will need Tk 22,953 crore in addition to the budgetary allocations of Tk 36,017 crore in the current fiscal year.

The amount doesn't include the expenditure on salaries and allowances for defence staffs.

The commission recommended 100 percent rise in basic salaries of government staffs on average in all grades.

It also proposed raising basic salary of the lowest grade to Tk 8,200 from Tk 4,100.

The review body, however, might suggest increasing the amount by Tk 50 to Tk 8,250.

One of its officials said they might propose keeping unchanged basic salaries recommended by the commission for almost all grades, except for the lowest one.

A nominal cut in salary -- ranging from Tk 2,000 to TK 3,000 -- may be suggested for the highest-level government officials, who would get a monthly salary of Tk 80,000-Tk 1 lakh as per the commission's recommendations, said the official.

The commission also recommended increasing the 20 to 22 types of allowances for government staffs. But the committee is likely to suggest some changes in those to ease the government's financial burden.

The official said there are some allowances that are given in proportion to salaries. The committee might propose changes in such a way that the recipients wouldn't get less than what they receive now. It would help reduce pressure on state coffers.

The committee might also endorse the commission's recommendations for providing house loans and introducing health or accident insurance for government staffs. But those would not take effect immediately, added the official.