Dr. Ishrat told media persons in Parliament House Islamabad – Work Underway on Unified Pay Scales and New Pension Rules
New pension formula for civilian employees soon
Last pay drawn to be reduced to minimise financial impact of introduction of proposed unified pay scales
No Deadline for implementation of Unified Pay Scales yet
(Published in DailyTimes Lahore)
Islamabad (Thursday, November 15, 2012) – Unified Pay Scales Commission Chairman and former State Bank of Pakistan (SBP) governor Dr Ishrat Hussain on Thursday said the commission has decided to propose a new pension formula under which percentage of last pay drawn would be reduced so as to minimise the financial impact of introduction of proposed unified pay scales.
However, the commission has decided to propose unified pay scales for all 2.5 million federal and provincial civilian employees and there would be no option to retain any other pay scale. Talking to reporters at the Parliament House on Thursday, Dr Ishrat Hussain said next meeting of the commission would be held during this month, however, he was not sure when the proposed unified pay scales would be applicable. He said that the executive, armed forces and judiciary would not be subject to uniform pay scales package and would retain their existing pay packages.
Formula for determination of pension would be revised and percentage of last pay drawn would be reduced so as to minimise impact on budget. The commission is awaiting recommendations of all the four provinces. Meetings with chief secretaries and finance secretaries have already been completed to finalise the proposed package for elimination of distortion in pay structure of the employees.
Dr Hussain informed that there was consensus among federal and provincial governments for introduction of unified pay scales. Replying to a question on any additional burden on budget due to the proposed package, he said that government employees were already getting raise in their salaries in the shape of ad hoc relief allowances and these would be merged in unified pay scales.
Replying to a question about any impact of proposed unified pay scales package on pension, Dr Hussain said that at present employees were getting pension based on higher percentage of last pay drawn. However, in new pension formula this percentage would be reduced, he added. He admitted that there has been massive misuse of monetisation of transport facility in the federal ministries, and officers were still using official vehicles for their private use despite the fact that they have been given cars on economic rates for this purpose. He said there would be a big saving on account of purchase of new cars this year and for years to come, however, misuse of the official cars needed strict action.