Salary increase for 2.1mn Bangladeshi public servants

By Mizan RahmanDhakaThe Bangladesh government issued a gazette notification on the new eighth pay scale for about 2.1mn public servants with retrospective effect from July, 2015, doubling their salaries and other financial benefits.Ali Khan, additional secretary of the finance division, handed over a copy of the gazette notification to Finance Minister AMA Muhith at the Secretariat at night Tuesday.“This is a gift to government officers and employees on the eve of the Victory Day,” Finance Minister AMA Muhith told media upon receiving the copy of the gazette notification. The enhanced salaries will be included in December’s pay.The eighth pay scale has no provision for time scale and selection grade, he noted.The new pay scale will be in effect from July 1, 2015, he said, adding that the officials will receive arrears of the first three months under the new pay scale with the salary of December while that of the remaining three months with the salary of January next.The government expenditure in the fiscal 2015-2016 will increase by 150bn taka ($1.87bn) to implement the new pay scale, said the finance minister.On September 7, the cabinet approved the new pay scale for government officers and employees. A New Year allowance has been introduced in the pay-scale.The cabinet approved the new pay scale in line with the recommendations of the Pay and Services Commission 2013, Armed Forces Pay Committee 2013 and the Secretary-level Review Committee on the pay commission.According to the new pay scale, the cabinet secretary, the principal secretary and the army chief would get fixed 86,000 taka as the monthly salary.Senior secretaries of the government alongside the armed forces officials with the rank equivalent to lieutenant general would get monthly fixed salary of 82,000 taka while that of the secretaries and armed forces official equivalent with the rank of Major General 78,000 taka per month.With the implementation of the new pay scale, the existing 20% dearness allowance was abolished.For the first time, the increment would be determined as per the percentage of the basic salaries instead of the efficiency bar and the specific increment, while the increment would be applicable for all government officials and employees from July 1.Besides, a new allowance, ‘Bengali New Year’, was introduced which would be 20% of the basic salary as it is expected to have a cultural impact alongside the financial one.