Govt Plans New Pay Scales and Bureaucratic Reforms, BPS-23 & BPS-24 Incoming?

The government is evaluating a proposal to introduce new pay scales for senior bureaucrats and restructure federal ministries to enhance efficiency. This was deliberated in a recent meeting of the civil service reforms committee, where officials suggested creating two new pay scales—BPS-23 and BPS-24—alongside a reclassification of ministries, merging allowances, and providing tax exemptions, according to The Express Tribune.

During the discussion, committee members debated whether the Basic Pay Scale (BPS) system should be maintained or replaced. The additional finance secretary noted that while a working group had assessed alternatives, replacing the BPS framework would lead to uneven pay distribution across various services.

The Economic Affairs Division shared insights from a regional salary comparison study, analyzing federal and provincial employee benefits and post-retirement financial packages.

The committee chair inquired about the pre-BPS salary structure (before 1973), and officials explained that wages were categorized into Class-I to Class-IV, based on skill levels.

The Planning, Development, and Special Initiatives secretary sought input from the Pay and Pension Commission, which backed keeping the BPS system but suggested modifying compensation based on workload and ministry functions.

The finance secretary supported introducing BPS-23 and BPS-24 for high-pressure, technical ministries and proposed forming a National Executive Service (NES) as an alternative.

The chair criticized the "one-size-fits-all" salary model, citing the Neelum-Jhelum hydropower project as a case where the lack of specialized talent led to financial losses. He stressed that key ministries like energy and power required competitive pay structures to attract skilled professionals.

Several members advocated for monetizing housing benefits for federal employees, but the additional finance secretary warned that this could cost the government Rs24 billion annually. If implemented, nearly 45% of employees currently receiving minimal housing allowances would demand equivalent compensation, significantly raising expenditure.

The Federal Public Service Commission (FPSC) secretary suggested a phased introduction of monetization, beginning with employees in the Federal Secretariat and Islamabad-based offices. The committee agreed to this gradual implementation.

The meeting concluded with the chair directing working groups to finalize recommendations for the next session.


SOURCE: The Profit Magazine.