The government announced a 52 percent increase, on average, in the basic salary of the public servants in the seventh national pay scale and fixed the highest salary at Tk 40,000 and the minimum at Tk 4,100.
After the cabinet approved the new pay scale yesterday Finance Minister Abul Maal Abdul Muhith announced it in the evening at a crowded press briefing at the Prime Minister's Office.
Separate pay scales for the judicial service has been announced for the first time this year as the judiciary was separated from the executive during the last caretaker government.
Replying to a query he said there would be no negative impact on the kitchen market with the announcement of new pay scale. "I think prices of essentials won't go up as the present market condition is stable."
Muhith said the district judges, the highest post in the judicial service, would get their salaries according to the third grade meaning they will receive Tk 29,000 as their monthly starting salary instead of Tk 16,800 under the previous scale.
Every member of the judicial service will be given special allowance, which is 30 percent of their basic salary. Members of the armed forces would get increased salary and wages according to their pay scale, Muhith said.
As per the new pay scale, benefits of police and other civil forces will be increased by 30 percent, he added.
The finance minister said the government would try its best to publish a gazette notification before the Eid-ul-Azha to be held at the end of this month.
He said the government would announce a separate pay scale for the education sector next time. Under the new scale teachers, both in public and private institutions will enjoy the same pay scale.
Nurses from diploma and degree backgrounds who work under the same scale will now get different scales as per the new pay scale.
Muhith said the medical allowance of the government employees has been increased to Tk 700 from Tk 500. The government will provide education allowance of Tk 200 to Tk 300.
The pension allowance has also been increased by 40 percent. But if the pensioner is 65 years old he will receive 50 percent increase. As per the new pay scale, either of the spouses will be entitled to pension in case one of them dies. At present only the wife gets the pension benefit if the husband dies.
The pay commission recommended Tk 45,000 as the highest salary, which was cut down to Tk 40,000. Tk 4,000 was proposed as the lowest salary, which was later increased to Tk 4,100.
The government will require an additional amount of Tk 6,222 crore a year to implement the new pay scale. Only the basic salary will come into effect from July this year while other allowances from next July.
In the current fiscal year's budget around Tk 3,500 crore was set aside for implementing the new pay scale for about 15 lakh beneficiaries.
Of that 7,61,214 government employees, 3,03,220 staffs of different autonomous institutions and 4,24,285 pensioners will come under the new pay scale.
In September last year the seventh pay commission was formed with former chairman of the Revenue Reform Commission Mustafizur Rahman as its chairman. The commission submitted its report in last April. The government formed a secretary level committee to review the report on which the cabinet took the decision yesterday with Prime Minister Sheikh Hasina in the chair.