Thukten Zangpo

The employees of the Druk Holding Investments (DHI) and DHI-owned companies could expect a higher salary raise compared to proposed increase for civil servants, which ranges from 55-74 percent if Parliament passes the Pay Revision Bill 2023.  

Similar to the salary revision for civil servants, aimed at addressing the rising cost of living, DHI is also working on its own revision, considering factors such as affordability and its requirements. 

Historically, DHI and DHI-owned companies have received higher salary raises than civil servants. After the 2019 pay revision, they got an average increase of 15 percent higher salary raise than civil servants, with salary raise between 22 percent to 60 percent for the employees.

At the same time, civil servants and state-owned enterprises received salary revisions of 6 percent to 35 percent. 

In 2019, the DHI revised pay scale provided a corporate allowance of 20 percent and performance-based variable allowance (PBVA) of 15 percent of basic pay.  However, no house rent allowance was provided for DHI and DHI-owned company employees. 

The revised pay structure, allowances and benefits for the DHI and DHI-owned companies came after three months from implementation of the civil servants’ salary retrospective in October 2019.

Currently, the highest basic monthly salary is drawn by the Prime Minister at Nu 190, 800, while the highest salary among the civil servants is drawn by the cabinet secretary at Nu 84, 180. 

At state-owned enterprises (SOEs), the highest basic pay is Nu 75,000, and for DHI companies, it is Nu 100,000. The chief executives’ salaries vary across different companies.  

DHI-owned companies include Druk Green Power Corporation, Bhutan Power Corporation, Bhutan Telecom, Bank of Bhutan, Drukair, Natural Resources Development Corporation, Dungsam Cement, State Mining Corporation, Construction Development Corporation, Dungsam Polymers, Thimphu Techpark, Koufuku International, Menjong Sorig Pharmaceuticals and State Trading Corporation.

SOEs

The SOEs’ salary revision will be implemented six months after the civil servants’ revised salary.

In 2019, the corporate employees saw 6 to 35 percent salary raise, which was 10-15 percent higher than that of general civil servants. Chief executive officers saw 6 percent upward revision, while regular employees experienced a raise of 14-35 percent. 

The 25 percent corporate allowance for SOEs was replaced by the PBVI, which was between 15-50 percent of the revised basic salary. At the same time, a house rent allowance of 20 percent of the revised basic pay was provided.

At 2019’s revision, the finance ministry notified that all other company specific allowances shall be continued as per the Service Rules of the SOEs, but boards of the SOEs were instructed to carefully review various allowances to ensure relevance, affordability and prevent unnecessary proliferation of the allowances. 

Under the ministry of finance, the 13 SOEs include Bhutan Broadcasting Service, Food Corporation of Bhutan, Farm Machinery Corporation, National Housing Development Corporation, Bhutan Livestock Development, Green Bhutan, National CSI Development Bank, Bhutan Agro Industries, Bhutan Development Bank, Bhutan Lottery, Kuensel, Bhutan Postal Corporation, and Bhutan Duty Free.