Pay hike decision likely on Sunday

KATHMANDU, July 19: The government during talks with protesting civil servants on Saturday has agreed to address the demands raised by the latter through a cabinet meeting Sunday. [break]



Representatives of various six government employees unions and a team of cabinet ministers led by Finance Minister Surendra Pandey participated in the talks Saturday.



Representatives of the unions after the talks told mediapersons that the government agreed in principle to increase the salaries as demanded. He said the government has yet to disclose the amount it will increase in the salaries.



The government agreed to adjust the salary of peons and non-gazetted first and second class civil servants, increase certain percentage in their basic salary and provide flat amount as dearness allowance to civil servants of all ranks, according to Ganesh Basyal, the president of Nepal Government Employees Organization (NGEO). NGEO is close to the CPN-UML.



At present, peons, the lowest ranking civil servants, draws about Rs 1,060 more salary than non-gazetted second class civil servants.



Talking to mediapersons, Finance Minister Surendra Pandey said the government would increase the pay of government employees whatever maximum amount is possible from the existing resources. “The government will increase the facilities of its employees keeping in view of the market price,” he added.



Rukma Lamichhane, the president of Maoist-affiliated National Government Employees Organization, said they have put off all protests pending cabinet decision on Sunday.



Nepali Congress-affiliated Nepal Government Employees Union had walked out from the talks midway alleging that the government team came for talks without adequate homework. Madhesi Civil Servants Forum also said that they will continue protests as the government has failed to meet their demand.



Earlier on Friday, the government agreed in principle to set the ceiling of the allowance of government employees at Rs 10 billion.



This is Rs 4.8 billion more than the actual amount allocated in the budget to pay allowances to about 425,000 people on government payroll. The deficit amount will be transferred from other budget heads.



According to a highly-placed government source, the additional amount proposed would be sufficient to flatly increase some Rs 1,800 in the existing allowance of each government employee.

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