Pay Fixation Complications Mean Many Government Employees Will Not Get the Increased Salary on Sunday

The government had planned to pay government officers and employees their increased salary under the new pay structure, along with four months of arrears, from next Sunday (1 November). But because the pay fixation work could not be finished in time, many will not receive the increased salary this time — for now, they will be paid under the old structure.

Sources at the Finance Division of the Ministry of Finance said the complications affect not only government officers and employees but also pensioners and MPO-listed teachers. Many of them have still not been able to complete the pay fixation work under the new structure, making it difficult to implement the increased salary for everyone on schedule. The arrears under the new structure may be paid at a later date.

Applications were made to Finance Secretary Md Khairuzzaman Majumdar to resolve the complications in implementing the new pay structure, but as of last Monday the problems remained unresolved. Applications have also come from various departments under the Finance Division and from several ministries, though it is understood that not all the problems can be solved before 1 November.

Implementing the new structure has exposed inconsistencies in fixing basic pay, the order of grades, the benefits of higher grades and the calculation of house rent allowance. In some cases junior officers will receive more pay than senior officers; in others, total income will fall even after promotion. Those affected have applied to the Finance Division for remedies without success so far.

The gazette for the new national pay structure was issued on 17 September. Pay fixation work began on 5 October, but many officers and employees of various ministries and divisions have still not been able to complete the process. Added to this are the technical and procedural complications of the government's integrated financial management system, iBAS++.

A responsible Finance Division official said some problems have arisen because of a lack of experience and knowledge among those involved in preparing and implementing the gazette. Work is under way to solve the problems and advice is being taken from experienced people. The Finance Secretary, however, declined to comment on the matter.

According to figures provided by employees, the starting basic pay under the new structure is 25,000 taka for grade 11 and 24,300 taka for grade 12. In other words, although grade 11 starts ahead, after fixation under the new rules employees of grade 12 are in some cases receiving higher basic pay. This has raised questions about the natural order of grade-based pay.

The inconsistency is not limited to basic pay; it also appears in house rent allowance after promotion. By the employees' example, at grade 10 a basic pay of 49,700 taka draws house rent allowance at 50 percent — 24,850 taka. But after promotion to grade 9, although the basic pay rises to 51,000 taka, the house rent allowance at 45 percent stands at 22,950 taka. So while the basic pay rises by 1,300 taka, the house rent allowance falls by 1,900 taka — a net fall of 600 taka in the combined total.

Officers and employees have also raised objections over the eligibility and timing rules for higher grades. They fear that because of ambiguity in the rules, senior and junior officers working in the same post may end up with equal pay, and that in some cases the fixation steps may allow a junior officer to draw more pay than a senior.

Employees complain that because the fixation process cannot be completed properly in the iBAS++ system, many are for now being deprived of the benefits of the new structure. They demand that the fixation rules, the order of grades, eligibility for higher grades and the house rent calculation be reviewed again to remove the inconsistencies.

Those concerned believe the complications must be resolved quickly if the increased salary is to take effect on schedule, and that clarifying the rules and simplifying fixation would reduce seniority and promotion-related disparities and make everyone's fixation and arrears payment easier. However, sources have given no firm timeline for when those whose fixation under the new structure is incomplete will actually receive the increased salary and arrears.