Hasina green-lights separate pay scale for BB, state banks

Posted by BankInfo on Sat, Nov 16 2013 11:51 am

Rejaul Karim Byron

Prime Minister Sheikh Hasina yesterday approved the separate pay scale for employees of Bangladesh Bank and the four state-owned commercial banks.
The premier also increased the basic salaries for the employees of Bangladesh Bank, Sonali, Agrani, Janata and Rupali banks as opposed to the recommendation made by a government panel.
Under the new 11-grade pay scale, which will replace the existing 20-grade pay structure, the basic salary for those in the lowest grade will be Tk 6,000 and Tk 55,000 for the highest.
The Finance Division might issue an order next week to this effect, Finance Minister AMA Muhith told The Daily Star after a meeting of the cabinet division at the secretariat in Dhaka.
The approval separated the pay scale of the central bank and the state-run commercial banks from the national pay scale, which Bangladesh Bank Governor Atiur Rahman has termed as an achievement.
He would take the issue to the central bank’s board after the government issues an order.
The government committee led by Cabinet Secretary Musharraf Hossain Bhuiyan submitted the proposal for a separate pay scale to the prime minister a few days ago.
Despite the latest pay hike, employees would continue enjoying the existing benefits as per bank rules, a finance ministry official said.
The pay hike came in order to recruit and retain meritorious bankers as the pay scale in the central bank and state-controlled commercial banks are lower than in the private banks. As a result, the state banks struggle to recruit and retain meritorious and efficient officials, said a member of the committee earlier.

He said 50 percent of the newly recruited officers would stay on with the state banks when the new pay scale comes into effect.
Earlier, the Banking Division had recommended the basic salary for those in the highest grade at Tk 52,000 and Tk 5,000 for the lowest grades.
In the existing 20-grade scale, the highest basic salary is Tk 33,500 and the lowest is Tk 4,100. The state banks and the central bank will have the same pay scale.
The managing directors and deputy managing directors of the state banks, who are appointed on a contractual basis, will not be included in the new pay scale.
However, the committee could not finalise the salaries for the BB governor and deputy governors. It will be decided later, said the official.