New pay scales from July

By: Afzal Bajwa | Published: January 05, 2010

ISLAMABAD - The Government has decided to defer till next financial year 2010-11 the new remunerations of public servants to be recommended by the Pay and Pension Commission, which is to submit its report in March 2010, sources informed on Monday.

According to well-placed sources, growing fiscal imbalances are not allowing the Government to pay revised salaries to the public sector employees even for the last quarter of the current financial year as against earlier promise of new remunerations from January 1, 2010.

At the time of the budget 2009-2010 in June last, the Government had undertaken to implement the Pay and Pension Commission’s recommendations from January 1, 2010. The Commission was supposed to submit its final report in December, the deadline now extended till March 2010. The government employees from top to bottom are therefore perturbed over delays in their salaries’ revision and that too in the face of inflationary pressures. After receiving the final report of the Commission, the Finance Ministry would examine it for some time. Keeping in view the Government’s capacity to pay new salaries as per the recommendations of the Commission, the Finance Ministry might amend the report before presenting it to the Federal Cabinet. The ministry would also seek the consent of the Secretaries Committee involving all federal secretaries in addition to Law Ministry.
Since the Commission is recommending abolition of system of basic pay scale (BPS) and monetisation of all perks and privileges including housing the transport facilities, the Government would first weigh the recommendations whether or not these were implementable. Former prime minister late Zulfikar Ali Bhutto had introduced the Basic pay scale system in Civil Services Reforms of 1973.

According to the sources, the mantra of monetising the perks and privileges of civil servants was unique to Dr Ishrat Hussain, the Chairman of the Commission. They sources traced the roots of this mantra back to the World Bank that was the parent organisation of Dr Hussain. First time, the sources further informed, the World Bank has recommended back in 1990 to monetise the perks of civil servants.

This was not for the first time that Dr Hussain has been recommending monetisation of perks. He had recommended the same during the previous regime as the head of National Commission on Government Reforms, the sources observed. The sources also revealed TheNation that the Commission was not clear in recommending the substitute to the BPS. Prior to the 1973 reforms, the public servants were paid salaries according to the load of supervision, type of responsibility, and level of tensions born by the incumbent policymaker. Now if the Government for instance implements the recommendations of the Pay Commission as such, it would not be able touch the PBS in provincial administrations, the sources added.

http://www.nation.com.pk/pakistan-ne...es-from-July/1

Monetising the perks will be a very good step for the welfare of majority of Govt employees (if the proposal is accepted)

Assalamualikum is this new announcement will be applicable in 2011 exam of CSS.

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what does this have to do with CSS 2011

Sir, this announcement is regarding an expected increase in the Basic Pay Scales (BPS). It has yet to be put into practice.

I hope this clarifies your query.

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Fifty per cent raise for govt employees recommended


Saturday, 10 Apr, 2010 | 02:45 AM PST | DAWN


ISLAMABAD: As part of a major overhaul of the government machinery, a 50 per cent across-the-board raise in the pay and pension of civil and military personnel from July 1 this year has been proposed. The proposal will have an impact of about Rs507 billion on the national exchequer over three years.

The proposal is part of a 131-page report submitted to Prime Minister’s Adviser on Finance and Economic Affairs Dr Abdul Hafeez Shaikh by a 21-member Pay and Pension Commission led by Dr Ishrat Hussain after year-long consultations with federal ministries, provincial governments, the AJK prime minister and employees’ associations.

The report makes startling revelations about the deterioration of the quality of 2.84 million public servants in the absence of civil service reforms for years, saying the government is “no longer the employer of choice among young people and is unable to attract and retain people of the right calibre”.

It recommends a ban on recruitment in Grades 1-16 to reduce the government’s size.

In 2006, the Federal Public Service Commission found that 25 vacancies for the Central Superior Service went unfilled. In 2007, the number was 47, and in 2008 the figure rose to 88. At one point, Punjab wanted to recruit 10 district prosecutors in BS-19. Fifty-four candidates appeared for the selection process, but only one of them reached the final stage. But even he could not clear his viva. The report has recommended excluding the bureaucracy from the jurisdiction of the National Accountability Bureau and similar provincial agencies, suggesting instead “a strong, open, transparent and objective performance management system” on the pattern of Malaysia and Singapore for public officials.

The commission has proposed immediate exclusion of groups like teachers, lecturers, professors, professionals of health departments, police, internal security forces and subordinate judiciary from the purview of the national pay scale.

“They will have their own pay scales that will vary from each other. These professionals will be excluded from the purview of the Civil Servants Act and will be public servants with their own rules and regulations.”

Under the plan, the existing 22 pay scales of civilian employees will be reduced to 14. The entry level for officers has been proposed as BS-10 instead of BS-17.

All ad hoc relief allowances granted to civil servants since July 1999 will be merged into the pay scales of 2008 and then discontinued.

The minimum and maximum pay after the merger will be increased by 50 per cent in three years.

The salaries will be increased by 15 per cent on July 1 this year, followed by another 15 per cent on July 1, 2011, and 20 per cent in 2012 when the new scales will become fully operational.

The pay scales of armed forces will be increased similarly.

The existing employees will have the choice to continue with the BPS-2008 or opt for the new scales which will apply to all new entrants.

An amount equivalent to the housing, transport and outdoor medical facilities of government servants will be made part of the pay package. However, the value of the benefits will not be treated as pensionable emoluments.

Like Singapore, civil servants will get financial assistance for owning houses. They will be encouraged to utilise their defined contribution account for down payment and pay monthly instalments financed from monetised amount in salaries, because simple payment of the benefits in salaries will encourage higher consumption.

Members of subordinate judiciary will continue to avail housing and transport facilities at the places of their postings.

PENSION: The pension of two categories of existing pensioners will be increased by 50 per cent and 65 per cent in three years. Those who retired before Dec 1, 2001, will get 20 per cent increase on July 1 this year, another 20 per cent next year and 25 per cent in 2012. The increases for those who retired after December 2001 will be 15 per cent, 15 per cent and 20 per cent over the three years.

All new entrants into government service will be governed under the Defined Contributory Scheme (DCS) to become effective on July 1.

The rate of commutation will be reduced from the current 35 per cent to 25 per cent and accrual rate will be adjusted provided their pension is somewhat higher than the one which would have been admissible if the person had retired under the existing structure.

Family pension of those who die after retirement will be increased from 50 per cent to 75 per cent.

The minimum pension will be increased from Rs2,000 per month to Rs3,000 and minimum family pension from Rs1,000 to 1,500. Ad hoc raise given to retiring employees in 2005, 2006 and 2008 will be discontinued.

The federal establishment division and provincial services and general administration divisions will be converted into human resource divisions.

GOVERNMENT SIZE: The size of government will be gradually reduced by not filling vacancies in grades 1-16 (except for education, health, police and judiciary) and introducing information technology tools.

The size will be further reduced through privatisation of corporations and companies and abolition of federal ministries and divisions whose functions have been transferred to provinces and local governments.

The impact of the measures has been estimated at Rs507 billion, including Rs203 billion in 2010, Rs190 billion in 2011-12 and Rs114 billion in 2012-13.

The amount is estimated to be 10 per cent, 8.2 per cent and 4.2 per cent of the current expenditure in the first, second and third year. The salary and pension budget will increase by 25 per cent next year, 20 per cent in 2011-12 and 10 per cent in 2012-13.

The increase in basic pay and allowances will cost Rs267 billion, monetised value of perks Rs174 billion and pensions Rs66 billion.

SPECIAL ALLOWANCES: Special allowances will be given to teachers of science, mathematics, computer science and English and teachers and health professionals serving in rural, tough and remote areas.The commission mentioned two resolutions adopted by the National Assembly and the NWFP Assembly recommending implementation of the proposals.


http://www.dawn.com/wps/wcm/connect/...ecommended-040

One who has led this commission is very impressive and progressive mind in Pakistan. He revolutionized State Bank of Pakistan. His report and recommendations will definitely bring a positive change. It was the need of hour to reform this system.

And the one to whom this report has been submitted is again a landmark in our country. He is person of good repute and his credibility is laudable. We except good response from him too. There are only few visionary persons in our machinery and Dr. Ishrat Hussain, Dr Abdul Hafeez Shaikh are in that lot.

These steps will curtail corruption rate, bring brilliant minds in mainstream, create competition in system, and bring transparency & accountability. These reforms will attract those competent minds which used to avoid bureaucracy only because of its outdated working and less rewarding job. Government will be saving billions of rupees which are embezzled, and will be incurring lesser burden on the budget in the shape of these incentives. As per cost benefit analysis government and public will be in net benefit.


Regards

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.

http://www.dawn.com/wps/wcm/connect/...ales-130-hh-07

AOA
According to my information Govt is deficit in funds so it will not be able to entertain the recommendations of the said committee in its true spirit. Moreover, an increment of only 15% of the basic pay (existing BPS system) is expected in FY 2010-11. Let wait and see.

please why are you discouraging us?