• Wednesday, Aug 10, 2022
  • Last Update : 04:24 pm

No pay hike next year if inflation below 5%

  • Published at 02:57 pm March 12th, 2017
  • Last updated at 12:30 am March 13th, 2017
No pay hike next year if inflation below 5%
Finance Minister AMA Muhith revealed this to reporters after a meeting with Commerce Minister Tofail Ahmed and Planning Minister AHM Mustafa Kamal at the Finance Ministry auditorium on Sunday. A small committee headed by the Finance Secretary would be formed to discuss ways to create a cell that will recommend the salary adjustment based on the inflation, he said. The cell will be coordinated by an additional secretary of the Cabinet Division. The Cabinet Division will submit within the next three months a report on how the yearly pay hike mechanism would work. Muhith noted that the new system would be effective before the 2019 national elections. He also gave the hint that there might be no pay hike for civil servants next year if the inflation is below 5%. “We have already adjusted the annual increment to account for 5% inflation,” the minister told reporters, “If inflation stays at 4% there will be no need to adjust the salaries.” The highest basic salary of civil servants was set at Tk 78,000 while the lowest at Tk 8,250 in the 8th national pay scale in 2015.