Govt officials’ salary allocation for next fiscal year increased by 8.21%

The budget outline for the next fiscal year has been prepared without taking into consideration the change in government officials’ salaries due to market inflation and no additional funds have been allocated to deal with such a situation.

According to a Finance Division official, the total allocation of funds for the payment of salaries and allowances for the next fiscal year have been increased by Tk4,082cr, which amounts to a 8.21% increment, in order to accommodate the increase in the total number of pensioners, but has not taken into consideration the effect of inflation on the salaries of 2.1 million government officials.

On May 9, the government formed a nine member committee, headed by the Cabinet secretary (coordination and reforms), to review the existing pay scale of the 2.1 million civil servants and to set their future salaries and allowances. The committee was also asked to recommend how to adjust the salaries, allowances and costs of living for the government employees with the rate of inflation and submit a report within 90 days.

However, the Finance Division official said: “We do not know when the committee will submit their report on the salary adjustment to the authorities concerned. We have allocated Tk53,833cr [currently Tk49,751cr] for the payment of salaries and allowances for the next fiscal year.”

The increase in budget allocation was made to account for the fact that more government officials are supposed to retire within the next fiscal year, he said, adding that officials who have retired and are above 70 years of age will be eligible for pension facilities.

In line with the demands of pensioners who have already draw 100% of their pensions, the government started paying out Pohela Boishakh festival bonuses for pensioners about four months ago.

The finance division official added that there would be no change in the usual 5.50% annual salary increment as set by the Farashuddin pay scale.

On December 21, 2014, the Pay and Service Commission, led by former central bank governor Mohammad Farashuddin, recommended increasing the salaries of public servants by almost 100% on average. The government began giving out raises from July 1, 2016.

In the budget announcement for the 2015-16 fiscal year, the government had allocated an additional sum of Tk26,643cr for payment of the first phase of the last pay scale salaries.