As Bhutan aspires to become a developed nation by 2034, it must confront a critical challenge threatening this ambitious goal: the continuous exodus of qualified and experienced public servants seeking better opportunities abroad. Discussions on reviewing the Pay Structure Act this week could not have come at a more crucial time, as they address the foundation of effective governance and public service delivery.

The correlation between public service excellence and competitive compensation is evident in developed nations. Singapore, often regarded as a model of efficiency and accountable public service for us, offers fresh graduates monthly salaries ranging from SGD 3,500 to 4,000, with senior management earning up to SGD 17,370. These packages are complemented by comprehensive benefits, including performance bonuses, leave allowances for vacations, studies, home ownership, marriage, maternity and paternity, childcare and parental care, and healthcare coverage, flexible work arrangements such as part-time roles, telecommuting, and staggered hours further enhance their appeal.

Similarly, Japanese public servants earn between 98,000 and 1,390,000 yen per month, along with free housing and other benefits, which significantly exceed the average living expenses of 130,000 yen. In Australia, public servant salaries range from AUD 49,000 to over AUD 200,000 annually besides other allowances, far surpassing the national minimum wage and supporting the high cost of living.

The 2022 Bhutan Living Standards Survey highlights a significant financial disparity in Bhutan. Average monthly household expenditures of Nu 52,813 far exceed the average income of Nu 33,844, resulting in a deficit of Nu 18,969. This issue is more pronounced in urban areas, where public servants struggle to meet living standards, with expenditures amounting to Nu 62,435 against an income of Nu 49,896. With the current compensation structure falling drastically behind living costs and minimal financial support mechanisms such as vehicle loans requiring substantial upfront payments, Bhutan risks losing its most talented public servants to other countries.

Consider this practical example: a necessity for many public servants – a Maruti Suzuki Alto 800 – costs between Nu 700,000 and 800,000, requiring approximately 38 months’ salary for an employee earning Nu 18,000 per month. This financial strain inevitably impacts service delivery and may compromise integrity.

Denmark provides a particularly instructive example. Renowned as the least corrupt country globally, Denmark’s success is built on a foundation of competitive compensation for public servants. Its structured compensation system, which combines basic salary scales with negotiable allowances for qualifications, experience, and expertise, ensures public servants can maintain professional dignity while delivering efficient services. In Bhutan, by contrast, expertise has no impact on benefits.

The discourse on corruption in the National Assembly this week misses a crucial point by focusing solely on accountability without addressing the economic pressures that can lead to corrupt practices. Not all corruption stems from criminal intent; it is often a desperate response to economic hardship. When public servants struggle to meet basic needs, the temptation to seek alternative income sources becomes overwhelming, potentially leading to systemic corruption.

Investing in public service compensation is not just an expense but a cornerstone of national development, governance quality, and corruption prevention. Ethical and motivated public servants drive private-sector growth and national transformation. Without competitive benefits and allowances to retain skilled workers, Bhutan’s aspirations for 2034 will falter, risking systemic corruption and inefficiency.  If we need a world-class public service system characterized by optimal efficiency and transformative capabilities as envisioned, the public servants must get world-class compensation and benefits.

Sonam Tshering

Lawyer, Thimphu

Disclaimer: The views expressed in this article are author’s own