New pay scale to be implemented in phases

The government has decided to implement the national pay scale in phases over three years because of a shortage of fund.

Finance Secretary Fazle Kabir yesterday told the Dhaka Tribune that the government wanted to start implementing the pay scale from next January although there was no specific allocation in the next budget.

He said the fund would be allocated in the revised budget and the National Pay and Service Commission might submit recommendations in December.

A senior official of the Finance Division had last week said there was a provision for Tk11,160 crore hidden under a sub-head under non-development capital expenditure.

“It is a flexible account. The money was kept hidden because, if disclosed, it could have an impact on the market causing inflation,” the official added.

If the amount is used in the next pay scale, it should be approved from the cabinet as per the budget management act, he said.

In his budget speech, Finance Minister AMA Muhith said the Pay Commission was expected to submit its recommendations by December.

Another official of the Finance Division said it would require more than Tk5,000 crore to meet the increased pay for six months. The estimate was based on a possibility that the new pay structure would take effect from next January.

The Finance Division allocated Tk3,494 crore for 20% dearness allowance in the outgoing fiscal year. As a result, the allocation for the salaries of civil servants amounted to Tk28,867 crore. The budget for the next fiscal year will have an allocation of Tk29,975 crore for the salaries and allowances.

Presently, there are more than 8.32 lakh government employees and officers and around 5 lakh pensioners.