• Saturday, February 28, 2015

Govt employees may see another hike in dearness allowance

Star Business Report

Government employees may see another round of hike in their dearness allowance, by around 15 percent, to be accompanied by other perks, in the next fiscal year, a finance ministry official said.
They were given 20 percent DA in the current fiscal year. The additional DA may be put into force after the month of Ramadan with retrospective effect, the official said.
The government has already extended the tenure of the eighth pay and service commission by six months to December 17.
The commission will submit a report on the salary hike of 13 lakh government employees by the end of its tenure.
However, the official said the extension of six months was not enough and the committee may require another one or two months to submit its report.

As a result, the possibility of   scrutinising the report and implementing it in the next fiscal year is slim, he said, asking not to be named.
Though the government is considering ways to give more financial benefits to the public servants in the next fiscal year, no formal announcement may be made in the budget speech of the finance minister.
The government thinks both expenditure and inflationary pressure would be accommodated if the pay hike is made gradually.
The 20 percent DA that was given this fiscal year would cost the government Tk 4,300 crore, for which there was no allocation in the current budget. A portion of the Padma bridge fund was diverted to meeting the expenditure.
In the next budget too, no separate allocation will be made for the additional DA, the finance ministry official said.
The government in November last year formed the 17-member pay and service commission headed by Mohammed Farashuddin, a former Bangladesh Bank governor. The commission started working on December 17 last year and its tenure was scheduled to end in June.

Published: 12:00 am Thursday, May 29, 2014

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