The government yesterday finally approved the much-awaited Eighth Pay Scale for public servants, keeping Tk78,000 as the highest basic pay and Tk8,250 as the lowest.
State employees will get the hiked salary with effect from July 1, 2015 but their increased allowances will come into effect on July 1, 2016.
The approval came in the weekly cabinet meeting at the Secretariat with Prime Minister Sheikh Hasina in the chair.
The cabinet also approved recommendations from the Armed Forces Pay Committee with effect from July 1.
For funding the basic pay hikes, the government will have to spend Tk15,904.24 crore. When the government employees will start getting the allowances, another Tk23,828.17 crore will be needed.
According to the Eighth Pay Scale, Grade 1 officials, whose basic monthly pay was Tk40,000, will now get Tk78,000. Grade 20 employees, whose existing basic salary is Tk4,100, will now get Tk8,250.
The provisions for Time Scale and Selection Grade have been scrapped but there are arrangements for yearly increment for officials belonging to grades 2 to 20.
After the cabinet meeting, Cabinet Secretary Muhammad Musharraf Hossain Bhuiyan disclosed the key features to reporters.
Pension for government servants has been raised to 90% from the existing 80% of their basic salaries.
With the implementation of the new pay structure, the existing class system for categorising government employees will be abolished; from now on they will be recognised according to the pay grade they belong to.
In December last year, the Eighth Pay Commission, led by former Bangladesh Bank governor Mohammed Farashuddin, placed recommendations for 16 grades. A secretary-level review committee later revised the number to 20.
Currently, there are around 2.1 million public servants who have been drawing salaries as per the Seventh Pay Scale that was introduced in 2009.
Compound increment
The provision for compound increment will now replace the old time scale and selection grade systems. The public servants belonging to the 6th and 20th grades in the new pay scale will get 5% compound increment on their basic salaries.
For example, someone whose basic salary is Tk10,000 will get a Tk500 increment. So, at the end of the first year, his salary would be Tk10,500. In the second year, he will get another 5% increment, but this time on his new basic pay – Tk10,500. So, at the end of the second year, his salary would be Tk11,225.
The annual rate of compound increment for other grades are: officials under Grade 5 gets 4.5%, Grade 3 and 4 get 4%, and Grade 2 officials will get 3.7%.
Officials belonging to Grade 1 will not get any yearly increment, neither will the cabinet/principal and senior secretaries.
Cabinet Secretary Musharraf said that the salaries will increase at higher rates now that selection grade and time scale are abolished.
The allowances, except house rent, will remain the same unless an official gets promoted from one grade to another. Government officials currently get a number of allowances including medical allowance.
Asked when the new salaries will hit the accounts of the public servants, the cabinet secretary said these details will be disclosed through a gazette notification within a month.
Pahela Baishakh bonus
For the first time in history, the government employees are going to get festival bonuses on the occasion of Pohela Boishakh, the Bangla new year.
Apart from the bonuses for the religious festivals, the public servants will from now on get 20% of their basic pay as Pohela Boishakh bonus.
According to the summary of yesterday’s cabinet meeting, this bonus may come into affect from the coming new year, that is April 14, 2016.
“The festival [Pohela Boishakh] is the only universal festival in the country. So the employees will get bonus to observe the festivities,” said Musharraf.
Special category
From now on, officials with statuses higher than regular secretaries will be categorised as special grade officials.
Chiefs of the armed forces, principal secretary, cabinet secretary and senior secretaries will be categorised under the special grade.
As per the new scale, the salary of the senior secretaries will be Tk82,000 while the rest will get Tk86,000 as basic monthly pay. They will not get any yearly increment.
MPO teachers included
Teachers of non-government educational institutions with monthly pay order (MPO) enlistments will enjoy the benefits of the new pay scale. However, they will have to wait a little bit longer to get the increased salaries.
Musharraf told reporters that the MPO teachers should have got the salaries with effect from July 1, but the government will take a little more time to examine how this can be best implemented.
Asked how long the wait will be, the secretary said the Finance Division will issue a circular on the detailed process and instructions.
Unlimited incentives
The government scientists will get the salary as per the approved pay scale, but there will be something extra for the innovators.
If anyone invents something, the government will provide them with “unlimited incentives,” Musharrof said.
