The Fourth Pay Commission has recommended a revision of basic pay of public servants from 14 to 29 percent with higher rate of revision at the lower levels. The prime minister’s office shared the report today.

Pay revision for public servants will consist of three components – modest increase in the basic pay, monetary reward in the form of Performance Based Incentive (PBI) and additional government contribution to post-retirement benefits (PF).

Main recommendations:

  • Elementary Service Personnel (ESP) – 29%
  • Public servants – 14% to 29%
  • Performance-based incentive – an additional allocation of 10% of annual pay to be earmarked, of which 5% will be for agency level performance and 5% for individual level performance.
  • Enhance employer’s component of PF contribution by 7%, from 11% to 18%.
  • Extend the same level of PF scheme to ESP & GSP.
  • Revise daily allowance by 100% at the lower level and 33% at the executive level.
  • 50% daily allowance when both food and lodge is provided.
  • Revise DSA for in-country training by 100% from Nu.1,000 to Nu.2,000.
  • For the Members of Parliament, the Commission recommends revision of driver and, fuel and maintenance allowance by 66% and 43% respectively.
  • Monetise vehicle import quota for public servants with a ceiling of Nu.0.800 million at Nu.0.250 million. Extended the same to Gups and Thrompons.
  • On vehicle import quota entitlement of Members of Parliament, Cabinet Ministers and Equivalent Position Holders, monetisation at Nu.1.5 million. Extended the same to the term-based appointments.
  • The net annual financial implication of the recommended revision of pay, allowances and benefits is estimated at Nu.4.238 billion, which is an increase of about 30% from the existing pay and allowances expenditure.
  • The financial implication over the next four years is about Nu.17.913 billion, which is within the fiscal space of the 12th FYP outlay.