Big govt salary hike proposed

The Pay and Services Commission has proposed a new salary structure for government employees.

It has recommended Tk 80,000 as highest basic pay and Tk 8,200 as the lowest.

The commission's chief Mohammad Farashuddin submitted its report to Finance Minister AMA Muhith on Sunday.

The new pay scale will be effective from July 1, 2015, said the minister.

Farashuddin, an ex-governor of the central bank, said the new structure proposes up to a 100 percent increase in the basic pay at the lowest and the highest levels.

It also suggests raising housing and other allowances.

The commission has recommended a reduction in salary structure levels from 20 to 16.

The government had set up the 17-member body on Nov 24 last year to work pay revision of its 1.3 million employees. It had initially been told to submit its report in six months but the time was later extended by another six.

The last Pay Commission was formed in 2007 during the caretaker regime, and the last time public servants got a hike was on Jul 1, 2009, with Tk 40,000 as highest basic pay and Tk 4,100 as the lowest.

The previous salary scales were meant for four years; the new one, however, will expire in six years, which means a new commission will be formed then.

The proposals were worked out on the basis of the estimated expenses of a six-member family, with education and health fees for two children.

Public servants are already entitled to 20 percent dearness allowance, effective since July, 2013.

The finance minister had told reporters earlier that the new scales would hike government expenses by 63.7 percent but it had resources to fund it.