Honorable MP Passang Dorji(Ph.D.) says SOEs are hindering private sector growth in Bhutan
Channel: Druk Phuensum Tshogpa
Date: 2022-11-15

The Finance Minister of Bhutan as a Member In-charge of the bill introduced the Pay Structure Reform Bill of Bhutan 2022 for deliberation.

The Minister submitted that the Pay Structure Reform Bill of Bhutan 2022 is to ensure;

greater transparency and accountability in the public service in line with the ongoing transformation efforts; and a clean wage system where various allowances will be grouped into one single wage and provide a pay structure that is free from hidden benefits.

It was also reported that the proposed pay structure comprises fixed pay and variable pay, where the fixed pay shall comprise Monthly Basic Pay (MBP) which will be applied for the calculation of post-service benefits and other computations currently pegged to the basic pay; and Non-Pensionable Monthly Pay (NPMP) which includes existing allowances applicable across the board (House Rent Allowance - HRA &, Communication Allowance). 

The variable pay comprises monthly variable compensation (MVC) which includes the cash equivalent of allowances; and Performance Based Incentives (PBI). The House was also informed that the salary increment ranges from 5% to 24% in the Civil Service.

The Bill was referred to the Economics and Finance Committee as Money Bill for further review and consultation after receiving the support of the House to deliberate the Bill. The House directed the Committee to report back with its findings and recommendations on the 21st and 22nd of November 2022.

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