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Monday, June 29th, 2009
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The government may narrow the gap between the highest and lowest salaries for public servants, fixing the lowest basic salary at Tk 4,800 by doubling that on the present scale of pay.

The Pay Commission had suggested the lowest basic salary at Tk 4,000 but a cabinet committee for implementation of the pay scale recommended doubling the present Tk 2,400.

Headed by the cabinet secretary, the committee has almost finalised the report of its review of the Pay Commission’s proposals and it will submit it to the cabinet very soon, committee sources said.

They said the recommendations have been made in accordance with the desire of government high-ups to minimise the salary gap between the highest and lowest echelons.

According to the existing pay scale, the ratio of the lowest and highest salaries is 1:9.58. The Pay Commission suggested making it 1:11.25.

However, the cabinet committee may recommend a 1:8.75 ratio.

As per the Pay Commission recommendations, officials under taxable income will pay the tax themselves.

The Pay Commission had suggested increasing salaries of grades I-X by 82-95 percent and those of lower grades XI-XX by 66-70 percent.

Reviewing the proposals, the cabinet committee suggested increasing the lower grade salaries by nearly 100 percent.

On the other hand, the Pay Commission had suggested Tk 45,000 as the fixed highest salary, but the cabinet committee recommended fixing it at Tk 42,000. The government will pay the tax in that case, the sources said.

They said most lower grade staffs do not have any other source of income, but skyrocketing of prices of essentials in the last few years has made their living difficult. So, their salaries will be increased.

The Pay Commission also recommended raising the age limit for retirement of government staff to 60 years, but the cabinet committee is in favour of continuing the present age limit of 57 years.

For the next fiscal year, Tk 3,146 crore has been allotted for implementation of the new pay scale and the finance minister in his budget speech said the new pay scale would be implemented in phases from July 1.

Ministry sources said the government may implement the enhanced basic salary from July 1, but government employees may have to wait until September-October to get the increased basic in hand.


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