The New Nation - Internet Edition

Staff Reporter

Finance Adviser Dr AB Mirza Azizul Islam yesterday proposed to constitute a Pay Commission to review and recommend a revised pay structure for the employees of government and autonomous bodies at the beginning of the next fiscal.

He also proposed 20 percent dearness allowance (DA) for government employees and pensioners effective from July 2008, aiming at reducing the hardship of the fixed-income people.

"The fixed-income group of people is facing hardship due to high inflation arising from the abnormal price-spikes in both international and domestic markets during recent times,' he said in his televised budget speech, adding that the existing pay structure of the low-paid government employees is not consistent with the cost of living.

In the case of pensioners, the finance adviser said the amount of dearness allowance would be determined on the basis of their un-commuted pension.

"The government has also decided to provide full festival allowance to the pensioners similar to that of incumbent government employees," he said in his budget speech for 2008-09 fiscal year.

The first national pay commission was formed in 1972. Four other pay commissions were formed in 1976, 1984, 1989 and 1996.