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New pay scale takes effect from July 1

WT24 Desk

The new pay scale announced for the public servants will implemented in phases from July 1, 2015 to ease the lives of government employees bearing the cost of living, UNB reports. “We formed the Pay and Services Commission, 2013 to revise pay and allowances of public employees of the Republic. I would like to announce in this august House that the new pay scale will be implemented from 1 July, 2015. The new pay scale will be implemented in phases,” Finance Minister AMA Muhith said.

He was placing the budget for FY16 in parliament on Thursday. Muhith said this pay scale would hopefully ease the lives of government employees in bearing the cost of living. “As a result, increased money supply will boost aggregate demand which in turn will contribute to overall economic growth.” Besides pay and allowances, the Finance Minister said the government might take an initiative to establish a commercial and development bank titled ‘Shammridhi Shopan Bank’ as recommended by the Pay and Services Commission for the welfare of government employees.

“Initially, this bank is expected to commence its operation with an initial paid-up capital of Tk.400 crore. This paid-up capital will be collected by selling primary shares to existing and retired employees. The matter, however, requires further consideration,” he added. Muhith said the government is also planning to establish a banking commission to review and recommend measures on banking policies and overall banking activities.

At present, more than 5 lakh retired government employees are enjoying pension benefits. There is no designated fund or authority to administer pension related activities of this huge number of pensioners, which may create imbalance in public expenditure management in the future. Therefore, Muhith said, the government has decided to establish a ‘Pension Fund Management Authority’ to manage government employees’ pension.

Initially, the government would allocate a certain amount of fund for the authority. Along with making pension payments from this fund, investment will be made in different portfolios to implement welfare programmes for the pensioners.

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