Clarification issued on Pay Structure Reform and Pay Revision

As the Ministry of Finance has been receiving numerous queries for clarification on the pay structure reform and pay revision from the finance and HR personnels, on 16th August the Ministry made a clarification.

It said as per BCSR 2018, Public servants on Long Term Training (LTT) are eligible for the basic pay, house rent allowance and Leave Travel Concession (LTC). And since there are no revision in the pay and the house rent, there shall be no changes in the payment of entitlements for public servants on LTT. However, since they are eligible for LTC while on LTT, the monthly prorated LTC as per the position levels shall be provided to the public servants on LTT.

The LTC ceiling shall be maximum of Nu.15,000.

Public Servants recruited on contract pegged to the civil service position levels shall be eligible for the pay revision at par the position levels of the civil service. Also, the pay revision for the project tied contract employees pegged to the civil service position levels shall be eligible subject to the approval from the project’s competent authority.

The pay revision will also be eligible for the substitute teachers and the National Contract Teachers at par with the pegged civil service positions. However, they shall not be eligible for the prorated Leave Encashment similar to Teachers.

The payment of the teaching allowances shall be based on the number of years of active service put into teaching profession and not the total number of years served in the civil/ public service.

The contract allowance shall be calculated on monthly basic pay which is minimum pay plus increments and not on the minimum pay scale.

Public servants under probation shall also be eligible for the prorated Leave Encashment (LE) and LTC.

The ECCD and NFE personnel shall be eligible for the prorated LE. LE shall be on the minimum pay scale and not on the basic salary.

For children studying in Bhutan, Children Education Allowance (CEA) at the rate of Nu. 20,400 equivalents to USD 250 per month or on actual expenses, whichever is lower shall be applicable for children of foreign service members posted outside. Actual expenses shall include only the school fees and CEA for Bhutan will only be paid in the Bhutanese currency.

The contract allowance shall be calculated on the Monthly Basic Pay which is minimum pay plus increments and not on the minimum pay scale.

Gratuity will be calculated at one month’s last basic pay for every complete year of service and minimum 10 years of service is required to be eligible for gratuity except for MPs and term or contract based appointments.

Leave Encashment shall be on the minimum pay scale and not on the basic pay.

The personal pay provided for public servants until June 2023 shall be clubbed under the variable pay and not basic pay. Personal pay is discontinued from 1st July 2023. 

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