The sixth National Pay Commission

The proposed National Pay Commission (NPC) has now been formally constituted by the government. The NPC has been asked to submit its report within four months i.e. by November next. The NPC will review the existing pay scales, allowances and other benefits of the employees of the government organisations and public bodies, and in formulating recommendations take in to account the expenditure of a four-member family and educational expenses of two children, and resource position of the government and public sector bodies. As the new scales of pay will be effective from January, 2005 it is expected that the NPC will submit its report and recommendations within the stipulated time. But one report published in the Daily Ittefaq of June 29, 2004 has surprised me. The report said that the Ministry of Finance had sent the draft of pay scales to different ministries and organisations for giving their opinion by the 31st July, 2004. If this report is true (I have not seen any rejoinder from the Ministry of Finance), then it is like putting the cart before the horse.

This sixth NPC of Bangladesh will be headed by the former Cabinet Secretary M Mujibul Huq who also headed the fifth NPC formed on September 7, 1996. Like previous NPCs, the sixth NPC will have full-time and part-time members from different disciplines including armed forces. A separate committee headed normally by the representative of the armed forces, in the NPC is formed to recommend scales of pay and other benefits for the defence services personnel. One representative from each of the three services, that is, army, navy and air force is nominated to this committee which works in close co-operation with the NPC.

The modus operandi of any NPC includes, inter alia: (i) obtaining opinion of the government organisations, statutory bodies and enterprises which are the beneficiaries, and of the general mass of people who are not beneficiaries, through separate sets of questionnaire: (ii) exchanging opinion with the academics, researchers and leaders of civil society; (iii) reviewing the reports submitted by the previous NPCs; (iv) reviewing the pay policy and structure of the neighbouring countries; (v) holding meetings of the NPC.

In the formulation of its report and recommendations, any NPC has to take into consideration a number of issues which include, inter alia: (a) the trend of cost of living indices over the last few years and their probable course in near future; (b) the minimum physical, social and moral needs of the employees; (c) the need to attract and retain in public sector highly talented and trained, professionally and technically qualified persons; (d) the need to reduce disparity of income between the public servants at the topmost and the lowest levels; (e) the imperative need of keeping public servants in key positions above temptation; (f) the requirement of efficiency, equity and incentives for work, (g) the overall economic condition of general mass of the people; (h) the resources of the government and public statutory bodies and enterprises, and demands thereon such as those on account of development planning and national security.

The newly formed NPC will undoubtedly take those and other issues into consideration in the formulation of its report and recommendations. It is our expectation that this NPC will not recommend routine incremental benefits in pay and fringe benefits, rather make an in-depth study on some basic issues and questions and suggest remedial measures. One such issue is whether we should have a centralised and uniform pay policy and structure for the public sector as a whole. Public Administration Reform Commission (PARC) in its report of June, 2000 (vol-1) has noted: "Bangladesh is one of the few countries of the world where salaries in the commercial or industrial enterprises are not differentiated from regular government salaries. This policy has a telling effect on the performance, quality of service, honesty, and quality of managers. In Pakistan, for example, the Central Bank, financial institutions, and state manufacturing units all have their own specific salary scales. There is no uniform salary scale for state owned enterprises. Wages and salaries of larger firms are usually higher than that of smaller firms. These enterprises are free to apply their own salary structure based on profitability and ability to pay. Numerous other East Asian developing countries follow this practice." The NPC should deliberate on this issue and recommend whether this policy may be followed in Bangladesh.

When the first NPC of independent Bangladesh was constituted on July 21, 1972 there were 2208 scales of pay in the public sector of the erstwhile Central Government of Pakistan and the Provincial Government of East Pakistan. The first NPC squeezed those 2208 scales into 10 grades and scales of pay. This created enormous problems in adjusting such a huge number of scales into 10 grades and scales only and as a result, government could implement the lower grades and scales i.e. grades and scales 5 to 10 only. The second NPC formed on February 20, 1976 recommended 52 grades and scales of pay. But the government reduced them into 20 grades and scales. The third, fourth and fifth NPCs recommended retention of 20 scales of pay.

After every pay commission, Finance Division's Implementation Wing (I headed this wing for about 2 years in the late nineties) is burdened with innumerable representations for removal of alleged anomalies in pay scales. The NPC may examine whether the number of pay scales may be increased not on the basis of designation of posts but taking into consideration job responsibilities of a post, its educational requirements and belonging to a revenue earning organisation or not and some other relevant factors.

The need for highly talented, efficient and dynamic civil servants in Bangladesh can hardly be over emphasised. Poor pay package in government jobs has been leading to brain drain. Brilliant students are not willing to compete and accept government jobs with low salaries. Rather, they prefer to become professionals with wide overseas acceptability. In order to attract and retain brilliant boys and girls in government jobs, particularly in the cadre service posts, the NPC may examine whether a recruit at the entry level of a cadre post having three or more first division/equivalent and first class in his/her career may be allowed at least three additional increments in his/her scale of pay. The NPC may come with its recommendation on this issue. Above all, our civil servants must be paid reasonably for a decent living. This will encourage them to discharge their assigned duties and responsibilities with devotion and sincerity.

M Abdul Latif Mondal is a former Secretary, Government of Bangladesh.