Separate Pay Scale
Muhith rejects bureaucrats' opposition to separate pay scale for BB officials
Everyone is waiting for any update>>>>>>>>>>>>>>
Finance Minister AMA Muhith Tuesday favoured a separate pay scale for Bangladesh Bank (BB) despite strong opposition from bureaucracy.
"The present government after assuming power committed to introducing a separate pay scale for BB," Muhith told newsmen after a meeting held at the Cabinet Division on BB's separate pay scale and unified pay scale for three state-owned corporatised banks.
"I am expecting the final recommendations on the proposed scales by the end of next month."
He, however, said the bureaucracy has a different opinion on BB's separate pay scale.
Muhith said the proposed pay scale of BB should be a model having no complexities so that the government could replicate it for another department of the government, if needed be.
"I have attended the meeting to help the bureaucrats change their mentality towards BB," the finance minister said.
The meeting was presided over by secretary, cabinet division, who is also the convener of the 'Committee on BB's separate pay scale and uniform pay scale for Sonali, Janata and Agrani banks'.
A power-point presentation on the issue was made at the meeting a copy of the same is available with the FE.
In the presentation the committee strongly opposed the introduction of separate pay scale for BB while it favoured a uniform pay scale for three-state owned banks.
The presentation said discipline and chain of command of at least 23 regulatory agencies will be affected if separate pay scale for BB is introduced.
The committee said the 'Government Service (reconstitution and conditions) Act 1975' has to be amended if a separate pay scale for BB is introduced. The presentation said the staffs of BB are already getting more benefit than those of government staffs.
Citing example, the presentation said BB officials ranging from joint directors to executive directors get car loan from BB without any interest. However, BB sources said no such privilege is available.
The committee, however, supported the introduction of a uniform pay scale for three state-owned banks.
The BB Governor, who attended the meeting, opposed the contents of presentation and underscored the need for separate pay scale for BB staffs, meeting sources said.
The secretaries for Finance Division, Banking Division, Ministry of Finance and secretaries for Ministry of Establishment and Ministry of Law and Parliamentary Affairs, who are also members of the Committee, attended the meeting, among others. Source - The Financial Express
Separate pay scales for BB, SCBs unlikely this fiscal
The separate pay scales for the staffs of Bangladesh Bank (BB) and
three state-owned corporatised banks are unlikely to be finalised
during the remaining period of the current fiscal year due mainly to
procedural complexities and bureaucratic tangles, official sources said.
The Finance Minister A MA Muhith responded positively to the proposal for separate pay scales for BB, Sonali Bank Ltd, Janata Bank Ltd and Agrani Bank ltd on December 18, 2009.
Muhith at a recent meeting with BB Governor and Chief Executive Officers of three state-owned banks concerned asked to submit their respective new pay structures to the Ministry of Finance (MoF) for approval.
Prior to their submission to the MoF, the pay scales have to be approved by the boards of the respective banks. The banks are yet to finalise their pay scales, banking sources said.
Officials of corporatised banks said they need at least 2-3 months to prepare a unified pay structure for about 50,000 officials and employees of three banks. The Chairmen of the banks concerned are expected to hold a meeting to formulate a guideline for the preparation of pay scales for their staffs.
After finalizing the guidelines, a comparative pay structures would be drafted, taking into cognizance the salaries and other benefits the private commercial banks offer to theirofficials and employees, bankers said.
The draft pay scales will then be placed to the respective bank boards for approval, they added.
"It will need at least 2 to 3 months to finalise our pay structures," a managing director of a state-owned bank told the FE.
Meanwhile, state-owned banks and financial institutions have already implemented the latest government pay scale.
On the other hand, the BB has not implemented the National Pay Scale. A separate pay scale for its officials and employees is likely to be placed at the board meeting of the BB in the first week of February, sources said.
Officials in the MoF said they would form a committee to examine the pay scale proposals before recommending the same to the government.
The committee might be given two months time to scrutinize the proposals of BB and three-banks, an official concerned said.
After getting the report from the proposed committee, the MoF will send a proposal to the cabinet division to exclude BB and three corporatised banks from the 'Government Service (reconstitution and conditions) Act 1975'.
The clause 5(1) of the Act says no separate pay scale for any state-owned organisation -- be it fully government or autonomous -- is justified.
Once the Cabinet approves the exclusion of the BB and three banks from the Act the MoF will okay the report of the committee, officials said.
However, a section of the MoF officials are opposed to the introduction of separate pay scales for public sector bank staffs, particularly those of the BB, according to sources.
Govt plans separate pay scale for 3 SCBs
The government is planning to introduce a separate pay scale in three state-owned commercial banks to reduce the gap between the salaries of government and private commercial banks, officials said. The finance minister, Abul Maal Abdul Muhith, recently asked the authorities concerned to take necessary measures in this regard. He also wanted to sit with the chairmen and chief executive officers of the Sonali, Janata and Agrani banks as well as the Bangladesh Bank governor to discuss the matter.
‘There is a huge disparity in the salaries of the SCBs and PCBs. A balance should, therefore, be made,’ said a senior finance ministry official. He said the salaries of state-owned commercial banks would be rationalised after discussion with the chairmen and CEOs. Entry-level officers at SCBs now get Tk 11,000 a month while officers of the same level at private banks get a minimum of Tk 16,000 a month. A ranking officer of a private commercial bank gets up to Tk 9 lakh a month while the bosses at SCBs get about Tk 8 lakh under the bank modernization and enterprise growth facilities project.
The salaries of managing directors and deputy managing directors three SCBs, according to the proposal sent to the finance ministry three months ago, would be Tk 40,000, for general managers Tk 29,000, for deputy general managers Tk 25,700, for assistance general managers Tk 22,250, for senior principal officers Tk 18,500 for principal officers and for senior officers Tk 15,000. The Sonali Bank Limited board has already approved the seventh pay scale announced by the government.
The Agrani Bank managing director, Syed Abu Naser Bukhtear Ahmed, told New Age the bank’s board of the directors would definitely formulate a separate pay scale. ‘The board of the directors will meet the authorities concerned to decide the separate pay scale.’ The number of staff at the Sonali Bank is 21839, at Janata 13,379 and at Agrani 10,988. The finance ministry during the tenure of the past caretaker government formed an advisory committee on the adoption of a separate pay scale for the Bangladesh Bank and it has remained shelved.