The National Pay and Services Commission opposes a separate pay scale for state-owned commercial banks and the central bank because of resource constraints, according to pay commission recommendations expected to be formally submitted next week.
A separate pay scale for central bankers and state-owned commercial bank employees was approved by the prime minster last year but had not been implemented because of legal complexities, sources said.
The NPSC has now recommended that state-owned commercial banks follow the proposed government pay structure until they pull out of the red by reducing defaults and increasing earnings. It has recommended that central bank employees also follow the proposed government pay structure since they are state employees.
If in the future Bangladesh Bank wants to implement a separate pay scale, its board of directors must first approve it and then Finance Division consent must be sought, according to the recommendations.
A high official of the Bank and Financial Institutions Division, who asked to remain anonymous, said: “We will examine the facilities that are supposed to be incorporated by the national pay commission under the eighth national pay scale for government staff.’’
“The Banking Division will adjust the salary structure of the separate pay scale before executing it in July for the next fiscal year,” the official said.
After the recently held fifth meeting of the Parliamentary Standing Committee on the Ministry of Finance, committee chairman Abdul Razzaque said: “We have recommended executing a separate pay scale for the central bank and the four state-owned banks.”
A competitive pay structure is necessary in order to compete with private commercial banks, he added.
After a meeting with Asian Development Bank Vice President Wencai Zhang, Finance Minister AMA Muhith reaffirmed last Wednesday that the national pay scale for government staff would come into effect next July 1.
After receiving the NPSC report of recommendations, a secretary-level committee will review it before placing it in cabinet, he said.
The central bank and state-owned banks secured clearance from the Law and Parliamentary Affairs Ministry in March for a separate pay scale.
On 24 November, the government formed the Eighth National Pay and Service Commission to formulate a new pay structure for public servants.
Mohammad Farashuddin, a former central bank governor, leads the 17-member commission which is comprised of three full-time members, 12 part-timers and a member secretary.
Bangladesh Bank and the four state-owned banks have a total of 61,000 personnel.
Prime Minister Sheikh Hasina signed the recommendation of the secretaries’ committee for a separate pay scale for Bangladesh Bank and the state-owned banks on November 12, 2013.
Under the as yet unimplemented separate pay scale, a new 11-grade salary structure will replace the existing 20-grade pay structure. The proposed basic salary for those in the lowest grade will be Tk6,000 and will be Tk55,000 for the highest grade.
The NPSC did not recommend separate pay scales for public universities.
According to NPSC recommendations, officials of the Bangladesh Rice Research Institution and the Bangladesh Atomic Energy Commission will be allowed to work in the private sector for three years to participate in higher research.
Officials of public sector agriculture, fisheries, livestock and scientific institutions will be eligible for awards of up to six months’ salary for special contributions to their sectors, according to NPSC recommendations.