Govt proposes merger of ad hoc allowances into basic pay
The government has thrashed out a proposal for the cabinet to merge two to three ad hoc allowances into basic pay from the next financial year, a move that would primarily benefit the pensioners.
The merger would very nominally benefit the serving employees of grade 1 to 16 who may receive increase of Rs55 to Rs280 per month in salaries due to rise in the level of basic pay scales.
According to a working of the regulation wing of the finance ministry, the employees in the basic pay scale one will get incremental benefit of Rs55 per month besides other allied benefits in shape of an increase in the base of basic salary, said the sources.
After merger of some of the ad hoc allowances, the minimum basic salary of BPS-1 will be Rs4,345 from the 2008 revised pay scale of Rs2,970. A retired employee would then be entitled to claim pension on the new level of Rs4,345 against the current level of Rs2,970 that has been effective since July 2008. The maximum basic pay for the grade one employee may be Rs8,840 against the current maximum salary of Rs5,670.
“The merger is primarily meant for the benefit of pensioners, as the government may not be able to provide significant relief to the serving employees due to financial constraints,” said a senior official of the finance ministry. The cabinet will take a final decision in this regard.
Currently, government servants have been getting five ad hoc allowances starting from 1998-99 to 2010. Last year, the government again gave an ad hoc allowance equivalent to 50 per cent of the basic pay. The official said the latest ad hoc allowance would not be considered for merger due to greater financial impact.
A Muttahida Qaumi Movement delegation, led by Federal Minister Dr Farooq Sattar, held a meeting with Finance Minister Dr Abdul Hafeez Shaikh and demanded up to 15 per cent increase in salaries of civil servants. One of the delegates told The Express Tribune that though the finance minister promised to look into the proposal, his body language suggested that the government would not be in a position to increase the salaries.
Changes in pay scales
According to the working, for a BPS-2 employee an increase of Rs60 per month has been worked out after the merger. The minimum salary is worked out at Rs4,855 against the current minimum salary of Rs3,035. For BPS-3, the increment has been worked out at Rs70 and the new minimum salary at Rs5,180 against the current level of Rs3,140 per month.
For BPS-4, the new minimum basic pay may be Rs5,180 against the current level of Rs3,240 with Rs80 monthly increment. For BPS-5, the new minimum salary has been worked out at Rs5,340 against Rs3,340 with a net increment of Rs95.
For BPS-6, the minimum basic pay has been worked out at Rs5,490 from Rs3,430 and a net increase of Rs105. For BPS-7, the new minimum basic pay will be Rs5,650 against the current salary of Rs3,530. These employees would receive a rise of Rs115 per month.
For grade-8, the new minimum basic salary is likely to be Rs5,860 against current pay of Rs3,665 with net increase of Rs125 per month. For the next scale, the minimum salary could be Rs6,110 against current minimum pay of Rs3,820. Grade-9 employees will receive a net monthly benefit of Rs140. Grade-10 employees' new minimum basic pay has been worked out at Rs6,330 against current level of Rs3,955 with a net rise of Rs155 per month.
For grade-11, the new minimum basic pay could be Rs6,580 against current level of Rs4,115 with a net addition of Rs165. For grade-12, the new minimum basic salary could be Rs6,835 against current level of Rs4,355, having net monthly benefit of Rs185. For grade-13, the new minimum salary may be Rs7,430 from Rs4,645 with a net monthly rise of Rs205.
For grade-14, the new basic salary could be Rs7,870 from Rs4,920 having net monthly benefit of Rs230. For grade-15, the new minimum basic salary is likely to be Rs8,350 against Rs5,220 with a net monthly rise of Rs250. For grade-16, the new minimum salary could be Rs9,695, up from Rs6,060 with a net monthly rise of Rs280.
Published in The Express Tribune, May 31 st , 2011.
Read about our first case history.... news clipings>> 
