March 31, 2010: Earlier version of this news
ISLAMABAD: The Pay and Pension Commission has suggested in its final report that pay scales should be reduced to 14 from 22 and pay increases be made on a biannual basis.

Under the Proposed Revised Merger Pay scales 2010, the salary package of a federal secretary would exceed Rs100,000 a month.

The report would be presented to Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh and finance secretary Salman Siddique on Wednesday.

The government has initiated the exercise with the aim of making government functionaries “more efficient and motivated” and reduce the number of employees.

“The step would help reduce expenditures in the long run and increase the government’s output,” claimed a senior official of the finance ministry.

The report suggests that the existing Grade 1 and 2 would be clubbed together to form a new Grade-1 with Rs4,820 as basic monthly pay, up from Rs2,970 and Rs3,035 for Grade 1 and 2, respectively.

Similarly, the biannual salary increase for Grade 1 has been suggested at Rs360 from the existing annual increase of Rs100 for Grade 2 employees.

The report said that after completion of 30 years’ service the basic pay of employees of newly-formed Grade 1 employee would be Rs10,220 per month.

The Grade 3 and 4 have been merged to form a new Grade 2 with the initial basic pay of Rs5,080 per month, compared to the existing Grade 2 basic pay of Rs3,240 per month.

At the end of 15 stages, which is equivalent to 30 years of service, a Grade 2 employee would be getting Rs12,280 per month, compared to Rs7,440 per month under the existing the pay scale.

The Grade 5 and 6 have been proposed to be clubbed together to form a new Grade 3 with Rs5,400 per month as initial basic pay.

The proposed new Grade 4 will combine Grade 7 and 8 and the initial basic pay will be Rs5,720 per month, compared to Rs3,565 for the existing Grade 8 employee.

The new Grade 5 is the combination of Grade 9 and 10, with Rs6,180 per month as the initial basic pay.

The proposed Grade will combine Grade 11 and 12 with a basic initial pay of Rs6,650 per month.

The new Grade 7 would put together Grade 13 and 14 with a basic pay of Rs7,520 per month. The new Grade 8 is existing Grade 15 with the basic pay beginning with Rs8,440 per month, compared to Rs5,220 for the existing Grade 15.The Grade 9 would be the existing Grade 16 with a basic initial pay of Rs8,800 per month compared to Rs6,060 for the existing Grade 16.

The Grade 10 will be the existing Grade 17 with the basic pay beginning from Rs15,180 per month, compared to Rs9,850 for the existing Grade 17.The existing Grade 18 and 19 have been clubbed together to form a new Grade 11 with Rs19,900 per month as the basic initial pay with a biannual increase of Rs4,250 compared to the current annual raise of Rs970.

The Grade 20 would be converted into Grade 12 with the initial basic pay of Rs35,980 per month.

The present Grade 21 would become Grade 13 with the basic pay of Rs39,880 per month. The highest grade would be Grade 14 with a monthly basic pay of Rs42,660 compared to the current basic pay of Rs27,680 per month.

The pay and pension commission headed by former governor of State Bank Dr Ishrat Husain also suggested a conveyance allowance for Basic Scale (BS)1 and 2 of Rs1,300 per month, for BS 3-5 Rs1,840, BS 6-8 Rs2,720, BS-9 Rs4,960, BS 10-11 Rs10,000, BS-12 Rs24,000, BS-13 Rs36,000 and BS-14 Rs40,000.

The finance ministry would be given a presentation on the monetisation of facilities and the ministry would evaluate the financial impact of the proposal.
The proposals of the commission would be presented to the prime minister at a briefing by the commission and the finance ministry for approval.

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