Interim Salary Increases for Staff of Autonomous Bodies Announced by Government

The federal government has recently introduced an ad hoc relief allowance for the executive and supervisory staff working in autonomous and semi-autonomous bodies and corporations. This new benefit, designed to align with the perks already extended to civil servants, marks a significant policy update intended to provide financial relief to a broader group of government employees.

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Starting July 1, 2024, the allowance will be 25% of the basic salary for employees in grades 1 through 16, and 20% for those in grades 17 through 22.

According to an office memorandum from the Finance Division, all ministries, divisions, and departments must implement this policy. However, the allowance will not apply to autonomous and semi-autonomous institutions and corporations that follow different pay scales. These organizations may still apply for the allowance if their board of directors or governors recommends it and the Standing Committee for Finance approves it, provided their financial status is stable.

The Finance Division has also specified that no division can change the terms of service for government employees without consulting them first. Ministries and divisions are required to report to the Finance Division about the autonomous and semi-autonomous bodies they oversee, including their pay structures and whether they have applied for the allowance.

The Finance Division will review these applications and forward them to the Standing Committee for Finance for consideration and final approval by the Secretary of the Finance Division.

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