Finance Minister Abul Maal Abdul Muhith has said the government is working on a new mechanism to adjust the salaries of civil servants on an annual basis instead of the current five-year term. The minister, emerging out of a meeting with Commerce Minister Tofail Ahmed and Planning Minister AHM Mustafa Kamal at the Finance ministry on Sunday, also said there would be no pay hike for civil servants next year if the rate of inflation was below 5%. “We have already adjusted the annual increment to account for 5% inflation,” Muhith told reporters. “If inflation stays at 4% there will be no need to adjust the salaries.”Muhith said the cabinet division would submit a report within the next three months detailing how the annual pay hike mechanism will work. He also said the mechanism would be effective before the national elections in 2019.

Source: Dhaka Tribune March 12, 2017 09:00 UTC