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Big pay increase for civil servants – FBC News

Big pay increase for civil servants – FBC News

Big pay increase for civil servants – FBC News

Ministry of Economy

In a move that will significantly benefit civil servants across the country, the government has announced a significant pay increase effective August 1, 2024.

The announcement was made by Finance Minister Professor Biman Prasad during the presentation of the 2024-2025 Budget.

Professor Prasad revealed that salary-based civil servants would get a pay increase ranging from 7% to 10%, while salaried employees will see a pay increase between 10% and 20%.

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Specifically, the lowest wage in the civil service, which falls under Band A, will rise from $4.60 per hour to $5.60 per hour, an increase of 20%.

Those in Band B, currently earning $6.27 per hour at Step 3, will enjoy a significant 60% pay increase.

“This major pay increase will inject nearly $85 million into the pockets of our approximately 42,000 public sector employees. These pay increases range from 7% to 20%, depending on salary scales.”

He emphasized the importance of an independent, professional and well-equipped civil service for effective service delivery and implementation of the government’s policy agenda.

Professor Prasad emphasized that the civil service is a crucial part of the government apparatus. It has the administrative skills and institutional capacities required to implement policy efficiently and effectively.

Unfortunately, the civil service has suffered years of neglect, with stagnant pay and deteriorating working conditions.

The sector also suffers from a lack of investment in training, capacity building and poor succession planning.

Professor Prasad pointed out that the civil service has been adversely affected by partisan promotion practices under the Open Merit Recruitment System (OMRS), which has led to inequality in the pay structure and political interference in appointments.

In addition to addressing these issues, the government has made significant changes to improve working conditions for civil servants.

Prof. Prasad says that permanent employment has been restored, providing stability and security, and the retirement age has been raised from 55 to 60, with a further extension to 62 for scarce skills.

There are currently more than 42,000 government-funded employees, including approximately 38,000 in the civil service and almost 4,000 in independent institutions and state-funded entities. The cost of this is approximately $1.2 billion.

The announced wage increase is expected to bring much-needed relief and recognition to these employees, reaffirming the government’s commitment to improving the capabilities and working conditions of the civil service.

In addition, the government is making an additional $5 million available for pay increases for staff at independent institutions such as Parliament, the Legal Aid Commission, the Public Prosecution Service and the Court of Audit.

These institutions have not had a job evaluation or salary adjustment since 2017.

However, entities that have seen a salary increase over the years are excluded from this adjustment.