Although pay revision for State Owned Enterprises (SOEs) includes the same basic salary percentage hike as civil servants, which is 6% to 35% plus 20% house rent allowance for corporate employees, the amount that SOE employees will get is higher than civil servants.
This was affirmed by Finance Minister Namgay Tshering during the Meet-The-Press session yesterday.
However, Lyonpo said that 25% corporate allowance and annual bonus have been removed in the new pay structure. The 25% corporate allowance is now replaced with 20% housing allowance. Further, there will be no arrears for six months as the salary raise will come into effect from December 1 this year.
Lyonpo added that as per the current salary structure of the SOEs, some companies used to get allowances but not all the companies. “The companies that are actually making profit are getting allowances whereas some of the companies with the social mandate are without allowances,” he said.
“The ministry of finance has verified why corporate allowance was given and it was found that corporate allowance was given in lieu of house rent allowance because corporate employees did not get house rent allowance like civil servants,” the minister said, adding that ministry is still in the process of devising the key indicators for allowance.
Lyonpo also said that besides revising the salary, the finance ministry has introduced a Performance-Based Variable Incentive Allowance (PBVI) for the SOEs.
“This performance will be based on social mandates and not just be financial as some companies have more revenue than others. But employees of SOEs will get obviously more than civil servants,” he said, adding that the allowance will be based on the annual performance of a company.
The government has introduced PBVI for pay hike based on performances (15% to 50%). Incentive allowance is given with 15% for good performance, 25% for very good performance and 50% for excellent performance.
Lyonpo Namgay Tshering said before the pay revision, the SOEs employees used to get 7% to 8% more than the civil servants. But, now the SOEs employees will get 1o% to 15% more than the general civil servants. “Even contract employees of SOEs will get the allowance,” he added.
Further, Lyonpo said that the finance ministry is mindful because teachers and health workers are civil servants as well. “When we say general civil servants, this is exclusive of the pay raise provided to the teachers and health worker,” he added.
Kinley Yonten from Thimphu