Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 6 Wed. June 02, 2004  
   
Front Page


Employees see 39.4pc income erosion in 7 yrs


The government employees experienced an income erosion of about 39.4 percent since 1997 when the last pay scale was announced as there was no cost of living adjustment by taking note of inflation.

"A person who joined the civil service as a first class gazetted officer in 1997 with a gross salary of Tk 6,525 should have been receiving a gross salary of Tk 9,100 in 2004 in order to protect the real value of his/her emolument in terms of 1997 prices," says the Centre for Policy Dialogue (CPD) in its independent review of Bangladesh's development.

"In other words, anybody joining the civil service in 2004 will be getting Tk 2,573 less in current prices in comparison to his/her colleagues who started off in 1997," says the review, which is to be released soon.

In term of US dollar, an entry point officer in Bangladesh gets about 45 percent of what is paid to a comparable Indian administrative service officer.

The government announced a 10 percent dearness allowance last year. Even when one accounts for this ad hoc benefit, the said income level remains 30.8 percent lower in real terms in 2004.

"One cannot expect the government officers to service the new demands of managing a market economy without being paid an adequate compensation which ensures standard living conditions as well as provides for higher incentives in comparison to other jobs including those in the private sector," observes CPD.

"In place of ad hoc and arbitrary benefits, pay adjustment needs to be implemented through the awar-ds of a permanent Pay Commission for government employees."

The present government promised to set up such a commission in its election manifesto of 2001.