The government will announce a permanent pay and services commission in Thursday’s budget announcement.
The budget statement excludes the proposal for dearness allowance (DA) and two increments but includes a block allocation to this end.
However, the prime minister is expected to announce the DA in two or three months after the budget is passed, said Finance Division officials.
Top officials there, including Finance Secretary Fazle Kabir, met to discuss issues of paying two increments but the meeting concluded inconclusively.
A total of Tk200bn is required to implement a permanent pay scale for 1.1m government employees, a Finance Division source said.
Last month, Finance Minister AMA Muhith said the government had no plans to announce DA for public servants.
The Seventh Pay Commission was formed on Aug 31, 2007 when the finance adviser to the then caretaker government announced 20% DA.
The incumbent government announced a new national pay scale in November 2009.
Under the new pay scale, the take-home salary of a top tier public servant is Tk40,000 but the basic pay of the lowest-ranked employee is just Tk4,100.
