Thukten Zangpo

With the government approving a 46 to 72 percent pay raise for State-owned enterprises (SOEs) yesterday, the SOE employees will receive the revised pay from this month.

This was announced by the finance ministry yesterday following its approval at the 155th session of the third Lhengye Zhungtshog held on October 17.

The revision is 46 percent for the top-level grade-1, chief executive officers will get a fixed monthly allowance of Nu 25,322, summing to a gross salary of Nu 92,018 per month.

A grade-18 employee with 72 percent increment will get an additional Nu 7,628 monthly and his salary would be Nu 21, 783 per month. For the grade-19 employee, there is a revision of 64 percent or Nu 6,468.

The ministry stated that the company and the position-specific allowance would be reviewed by respective boards considering the relevance and affordability.

“All such allowances shall be endorsed by the finance ministry to prevent the proliferation of the allowance.”

The ministry’s notification added that no additional allowance would be granted apart from the company and position-specific allowance.

All the employees would be entitled to performance-based variable incentives at 25 percent, at par with Druk Holding and Investments Companies.

For the pay and allowance revision of contract employees including chief executive officers, it would be decided by the board with the basic pay remaining unchanged. While contract allowance for chief executive officers should not exceed 60 percent of the minimum basic pay.

However, there was no clarity on the leave travel concession and leave encashment, civil servants’ pay revision prorated these monthly.