PAY STRUCTURE OF PUBLIC EMPLOYEES IN PAKISTAN

                      PAY STRUCTURE OF PUBLIC EMPLOYEES IN PAKISTAN

                                         HISTORIC EVOLUTION

I.          Pre-partition

      Ø  System of small nominal salaries with large commissions on collection of revenues and                        permission to engage in private trade was introduced by East India Company.

       Ø  Provided considerable scope for graft.

       Ø  On assumption of direct responsibility by the Crown, the system continued.

        Ø  Question of pay structure first time considered by Atchison Commission (1886-87).

        Ø  Commission’s specific concern was the formulation of policy for the employment of native’s               vis-à-vis the European Recommended that salaries of ICS recruited in England and PCS                       recruited entirely in India should be fixed on independent grounds. As far as possible                           members of both services should be on same pedestal of social equality.

        Ø  Islington Commission (1912-15) gave further consideration and suggested broad principle to               determine public pay policies in following terms:-

               “The Government should pay so much and so much only as was necessary to obtain

    recruits of right stamp and maintain them in such degree of comfort and dignity as would shield them from temptations and keep them efficient for the term of their office.”

Ø  In 1920 prevalent system of grades; expression of emoluments in lump-sum terms without yearly increment, each post having number of grades abolished. Scale system of pay having minimum and maximum ceiling, yearly increments and efficiency bars at suitable intervals introduced.

Later on Montague Chelmsford report and Lee Commission 1924 broached this question; the former, ‘proposing recruitment test and restoration of real pay of existing services’ while later urged reduction of disparity between commercial and official career and simultaneously realized the government’s inability to pay equivalent of commercial concerns and therefore did not ask for pay increase

Ø  Due to fall in the prices of raw commodities and deterioration in the financial conditions of government after the First World War, percentage cut was imposed in salaries for four years consecutively.

Ø  Economic slump of 1930; Reduced new pay scales involving reduction of 20% in the minimum and 30% in the maximum introduced. Pre 1931 salaries of ICS and certain other services protected.

Ø  2^nd World War aggravated the inflationary situation: Grain Allowance, Dearness Allowance, War Allowance and Ad-hoc Relief introduced in 1940, 1942 and 1944 without changing the pay structure.

Ø  The salaries of public employees continued downward slide. “Central Pay Commission 1946 under Sir Srinivasa established.”

Ø  Commission expressed reservation on the principle of payment of so much as was necessary and laid down criterion of payment of not less than minimum wage and also taking into account qualification, training of the individual and responsibilities of the job.

Ø  Report of the Commission came prior to partition. Government of India accepted the report. Government of Pakistan did not accept it on account of radically changed ground realities on independence and strain on its economy.
II.        Post-partitionØ  Government had to contend with problems of great magnitude on independence. Felt it could not pay public employees the salaries recommended by pre-partition Pay Commission.

Ø  Quaid-i-Azam issued an appeal to officers for acceptance of cut in salaries which despite good response was later withdrawn.

Ø  In 1948 Pay Commission under Mr. Justice M. Munir established which determined following broad principles:-

                            i)            Inherited pay scales of higher posts were un-justifiably high.the country was left with very small tax base and had to keep the non-development expenditure at the minimum possible level.                            i)            The living standard of low-paid employees was to be raised.                          ii)            The State need not offer such salaries as would attract           the best available material; the correct place for our men of genius was in private enterprise.                          iii)            Prices would soon come down.

Ø  The Commission divided public employees into 30 broad categories “suggested as many standard scales; introduced from January, 1949.”

Ø  Main feature was reduction in the salaries of all categories of employees.

Ø  Pay Commission under Justice A.R. Cornelius established in 1959. Submitted its report in 1962.

Ø  Proposed new 7 tier structure for the services with 3-5 grades under each group.

Ø  Neither the Service Structure nor the Pay Code recommended by the Commission was accepted.

Ø  Existing ‘Prescribed Scales of Pay’ nonetheless replaced by “Revised Prescribed Scales of Pay” in 1962 to meet ever- increasing inflationary pressures.

      Ø  Ad-hoc relief sanctioned to all non-gazette employees in March, 1969, @ 10, 15 and 20% of pay.

 

BPS PAY SCALES IN PAKISTAN

Though there are also some other Pay Scale Systems in Pakistan except Basic Pay Scale Structure (BPS) but BPS is widely used pay scale system in Pakistan. Most of the Government Departments and Organizations follow BPS System. SPS and army scales are examples of other pay systems in Pakistan while private organizations/companies/industries are free to make their own pay structures while Government fixes a minimum salary of any private employee.

BPS scales are regularly revised after every few years. Previously these were revised in 2008 and now after three years these are once again revised in 2011 keeping in view the inflation rate in Pakistan.

Here I am giving BPS pay structure in brief. 

Pay Scales in Pakistan

Civil servants are also entitled various other allowances (as per their department/organization rules and their service terms) along with their basic pay, as a part of their Gross Pay. These allowances may include Ad hoc Relief Allowance, Medical Allowance, Special Pay, Conveyance Allowance, House Rent allowance and several other miscellaneous allowances, which are applicable.

ADHOC RELIEF ALLOWANCE 2012

Government of Pakistan has announced an adhoc relief allowance of 20 percent of the running basic pay to all the employees of federal pay for the year 2012 ~ 2013. Provincial governments also announced the same for their employees.