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Finance Ministry yet to issue a notification to clarify pay revision of SOEs

December 5, 2019
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The Finance Ministry is yet to issue another notification on the pay revision of State-Owned Enterprises (SOEs). The Finance Minister said the earlier notification has misled the SOEs about government slashing allowances and incentives that the individual companies have within after introducing the Performance-Based Variable Incentive (PBVI) and the House Rent Allowance (HRA).

The notification will be a clarification with regards to different allowances, incentives and bonuses that the various companies have within themselves. Lyonpo said the ministry has received an informal appeal from some of the employees claiming that the pay revision is rather creating a downward revision than upward. Hence, the Cabinet has instructed the Finance Ministry to issue a notification.

“This is mainly because there is one particular sentence towards the end of notification which states that no other allowances will be entitled. So people were panicking because the government circular stated “no other allowances”. But what we meant from our side was to remove the corporate allowance and introduce HRA and PBVI, but it does not mean that government is baring the provision of companies’ specific allowances,” said the Finance Minister, Namgay Tshering.

The Finance Ministry announced during the recent Meet the Press session that the salary of SOEs will be revised at par with the civil servants with some changes in allowances w.e.f. 1st December.

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