New pay scale at final stage despite inflation concern

Prime Minister’s Chief Secretary ABM Abdus Sattar has said a new pay scale for government employees at the final stage and could be announced at any moment.

“The pay scale is under consideration and the government has made a commitment. We will implement it. It is at the final stage and could be announced at any moment,” he told reporters at the Secretariat on Sunday.

Inflation has hovered around 9 per cent for the past four years amid pressure on the economy. Sattar acknowledged the risk of it rising further.

He also acknowledged that the move could fuel inflation and make conditions more “difficult” for the public.

“That is also under our consideration. Generally, a pay scale is introduced every five to six years. The previous government did not announce one for 11 years, leaving us with the pressure of 1.8 million employees,” he said.

“Perhaps it will be somewhat difficult for the public. But employees are also entitled to adjust their living standards in line with inflation. The pay scale should normally come every five to six years. It has now been nearly 12 years.”

Twenty days before the February election, the Ninth National Pay Commission recommended raising the minimum basic salary from Tk 8,250 to Tk 20,000 and the maximum from Tk 78,000 to Tk 160,000.
The commission handed its report to then chief advisor Muhammad Yunus on Jan 21. Its chairman estimated implementation would require Tk 1.06 trillion.

The government currently spends Tk 1.31 trillion annually on 1.4 million employees and 900,000 pensioners.

Sattar said the economy and banking sector were the government’s biggest challenges.

“Looting took place and trillions of taka were siphoned out. We cannot support the private sector through banks,” he said, blaming the previous government and warning that recovery would take time.