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Introduction of Pay Revision Report

Posted on :12 June 2019

The 15th sitting convened with introduction of the Pay Revision Report by the Minister for Finance. Thirteen members of the National Council raised 27 questions related to pay revision.

The Minister for Finance in introducing the report highlighted that the three guiding principles behind formulating the pay revision was to protect erosion of income from past-unadjusted inflation, linking salaries to performance and enhancing the post-retirement benefits, while also attempting to ensure parity of pay, allowances, and benefits amongst different classes and levels of public servants. He said that respecting the Constitutional authority of the Pay Commission, the Cabinet after receiving the recommendations from the Pay Commission have refrained from making major changes as it will defeat the sole purpose of the autonomous formation of the Pay Commission otherwise.

Reporting on the procedure for Pay Commission’s recommendations, he expressed that the first and second Pay Commission’s recommendations were submitted to the Parliament in the form of a report which was then endorsed by the Parliament. However, the third Pay Commission’s recommendation were submitted in the form of Pay Revision Report but was passed as a ‘Money Bill’. Therefore, in order to remove these ambiguities and lay out a clear and consistent procedure for the implementation of the Pay Commission’s recommendations in the near future, the Hon. Minister recommended to table a Pay Commission Bill in the Parliament at the earliest possible.

The Minister acknowledged the letter received from the National Council on the ambiguity of the procedure for Pay Revision, which he considered was very beneficial in setting the correct procedure of the pay revision in future.

Although the National Assembly had declared and passed the Pay Revision Report as a Money Bill, he assured the house that the recommendations received from the National Council will be given serious consideration.

After the Hon. Minister presented the report, the Hon. Members amongst many issues raised questions on the procedure of tabling the Pay Commission Report, the basis on prioritization of government spending, hike in allowances, inequality in the distribution of income, resource of revenue to meet the surged recurrent expenditure, impact of pay revision on private sectors and sustainability of revenue.

The Chairperson directed the ad-hoc committee of the National Council to discuss thoroughly on the report immediately after today's session so that the house can have a meaningful and fruitful discussion on the report tomorrow.

 

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