After the state enterprises, the Druk Holding and Investments (DHI) has also announced the salary revision for employees of DHI and DHI-owned companies (DOC).
The proposal was under the radar of its remuneration revision committee since July, almost a month after civil service pay hike came into effect.
The approved pay scale maintains a uniform 10 percent variation across all grades bringing down the corporate allowance at 20 percent of the basic pay. No house rent allowances were provided for the employees of DHI and DOCs.
Earlier, a press release from the DHI stated that revision in basic pay scale always followed the suit of civil servants.
The Performance Based Variable Allowance (PBVA) was also brought down to 15 percent of Basic Pay. The PBVA in DHI’s context is being paid annually based on performance. A performance rating of 75 percent and less, meant no PBVI payout.
A rating in the higher ceiling would entitle its employees 15 percent and 25 in the highest cadre. In earlier PBVA, 25 percent of the basic salary is earmarked for the payout at the year-end.
The DHI stated that all existing anomalies in the remuneration of contract employees are also addressed by framing a separate pay structure for contract employees of DHI and DOCs including the Chief Executive Officers and management team.
All allowances and benefits of the companies, including the ones that are specific to the companies were also reviewed, rationalised and approved accordingly.
The current pay revision, according to the DHI, rationalised the pay structure that offers an average increase in pay for DHI Group at 32.59 percent. The highest percentage increase is at the ESP level with 60 percent and the lowest is for CEOs of the companies with an average of 22 percent.
As in the case of civil servants, DHI and Companies also adopted the salary indexation of five percent or annual inflation rate whichever is lower. This translates to 2.5 percent or 3 percent annual increment and the balance indexation, if any, shall be given as a lump sum cost of living adjustment at the year end. The annual salary indexation will be implemented with effect from January 1, 2020.
With the revision, overall annual financial implication is projected to increase by 28.20 percent from the current annual cost of pay, allowances and benefits.
The revised pay structure, allowances and benefits for all categories of employees will be implemented with retrospective effect from October 1, 2019. In an earlier interview with the finance minister, he said that in case of DHI the revision would come into effect from the date of announcement.
DHI owned companies included under the scope of this remuneration revision are Druk Green, 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 and the Woodcraft Centre.