State-Owned Enterprises (SOE) will be getting the Performance-Based Variable Incentive (PBVI) this year, according to the Finance Minister. However, Lyonpo did not give any definite timeline to roll out the PBVI. The PBVI was one of the major features of the SOEs’ pay hike in 2019.
The 25 per cent corporate allowances for State-Owned Enterprises were slashed off in accordance with the 2019 Pay Revision. Instead, the annual PBVI was introduced. In addition, SOE employees were also provided with 20 per cent House Rent Allowances.
The government had planned to give out the PBVI for the first time this year based on the past year’s performances. But with the COVID-19 pandemic causing a dent on the government coffers, many had wondered if this would be possible. However the Finance Minister yesterday assured that the PBVI will be given.
“This is one of the major reforms the government has brought in terms of revising the salary or pay packages for the SOE employees. At this point and time, I would say that the corporate employees shouldn’t be speculating around and shouldn’t be thinking that the government is going to do away with the PBVI. There is no looking back because the government have endorsed that at a cabinet-level and that has become a part of a policy for the pay packages for the SOE employees,” said Namgay Tshering, the Finance Minister.
Although the minister said it will be given soon, he did not give a clear timeline on when it would happen.
“We will definitely work on this because, in order to ascertain the PBVI entitlement what we did was for the first time the government, Ministry of Finance has signed Annual Compact Agreement with all the SOEs. So basically what we have to do is, rate the performance of the SOEs based on the variables and indicators that we have mutually agreed,” Lyonpo added.
The pay revision for SOEs came into effect from 1st December 2019.
PBVI was started by the government to encourage better performances from SOE companies.
Yeshi Dorji
