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Flat 60% as fixed allowance for DHI and DHI companies as pay revision

November 3, 2023
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Druk Holding and Investments, DHI, has announced a pay revision of 60 per cent on minimum basic pay as a fixed allowance for all categories of its employees in DHI and DHI companies. The decision was announced, yesterday, and will be effective from the 1st of October. This is the first pay raise for the DHI and DHI companies since 2019.

The recent pay revision covers the Bhutan Power Corporation, Bhutan Telecom, Bank of Bhutan, Natural Resources Development Corporation, Druk Green Power Corporation, State Mining Corporation, Dungsam Cement Corporation, Construction Development Corporation, Dungsam Polymers, Thimphu Tech Park, Koufuku International, and Menjong Sorig Pharmaceuticals.

Additionally, pay revisions for the DHI Controlled Companies such as Bhutan Board Products, Penden Cement, and State Trading Corporation have been recommended for the consideration of the respective company boards.

Unlike public servants and armed forces, the DHI’s board has approved a flat fixed allowance of 60 per cent for all categories of employees based on their minimum basic pay.

“We have done a 60 per cent increase and we have looked at a comparison ratio. So, even with the 60 per cent increase, the comparison ratio of civil service and DHI is very comparable, today. So, we feel that for the present situation or the present economy, having a very similar comparison ratio with the civil service is the best way to go ahead right now,” said Ujjwal Deep Dahal, the CEO of Druk Holding and Investments.

A news release from the DHI states that to simplify the wage system, some existing allowances were discontinued, and others were refined and merged.

A new allowance called the “talent retention allowance” has been introduced to attract and retain employees with critical skills.

“What is more relevant for us right now is to ensure that we have the talent pipeline for the businesses that we operate under DHI through its subsidiaries. So, it was important to design something that could be used as a tool by the leadership of the subsidiary companies and DHI to retain and attract talent, which has been a problem in recent times,” said Ujjwal Deep Dahal, the CEO of Druk Holding and Investments.

The revision is expected to increase the annual cost of the DHI Group by Nu 1.4bn.

The new cost is about 26 per cent increase from the current annual cost of pay, allowances, and benefits.

Karma Samten Wangda 

 

 

 

 

 

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