Compensation and perquisites for State Bank of Pakistan employees criticized

 

Compensation and perquisites for State Bank of Pakistan employees criticized

In a session in the Upper House of Parliament chaired by Chairman Sadiq Sanjrani, senators expressed concerns about State Bank of Pakistan (SBP) employees allegedly withdrawing monthly salaries of up to Rs 4 million. Senate Chairman advised senators to directly communicate with SBP employees about their salary details.

Responding to the issue, the caretaker finance minister acknowledged that salaries in the private banking sector have seen a significant increase. Shamshad Akhtar admitted that salaries in the State Bank are higher than those in the Finance Ministry and the Senate.

PPP Senator Raza Rabbani raised concerns about increasing rates of electricity and gas, influenced by the IMF, while criticizing the government's continued high expenses. He highlighted the creation of classes within the elite and emphasized the challenges faced by the common laborer, who struggles to meet basic needs on an average salary of Rs32,000 per month.

 

Salaries and perks of SBP employees:

The State Bank of Pakistan (SBP), established as a body corporate under the State Bank of Pakistan Act, 1956, entrusts the oversight of its affairs and functions to the Board of Directors according to the Act.

The Board of Directors is authorized, among other responsibilities, to establish regulations pertaining to the recruitment, compensation, and terms of service for employees. As of May 29, 2023, the SBP has a workforce of 1,178 employees, comprising 1,101 regular employees and 77 on a contract basis.

Two distinct compensation structures are in place at the SBP: the Old Monetized Salary Structure (OMS) and the New Compensation & Benefits Structure (NC&BS). The NC&BS, functioning as a defined contributory retirement scheme, extends benefits such as contributory provident fund and gratuity to approximately 81% of current SBP employees. On the other hand, the 19% of employees serving under OMS are entitled to a pension based on their last drawn salary as part of end-of-service benefits.


The salary scales for SBP Officers are categorized by grade under both the OMS and NC&BS. Additionally, the State Bank of Pakistan allocated a total budget of Rs 6,818 million for the fiscal year 2022-23 to cover salaries and benefits for its employees.

Source: Samaa News

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