𝐂𝐨𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐚𝐥𝐢𝐭𝐲 𝐨𝐟 𝐏𝐚𝐲 𝐑𝐞𝐟𝐨𝐫𝐦𝐬 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐞𝐝 𝐢𝐧 𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭

…𝑭𝒊𝒏𝒂𝒏𝒄𝒆 𝑴𝒊𝒏𝒊𝒔𝒕𝒆𝒓 𝒅𝒆𝒇𝒆𝒏𝒅𝒔 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒍𝒂𝒘𝒔, 𝒘𝒉𝒊𝒍𝒆 𝑴𝑷𝒔 𝒄𝒊𝒕𝒆 𝒄𝒐𝒏𝒔𝒕𝒊𝒕𝒖𝒕𝒊𝒐𝒏𝒂𝒍 𝒗𝒊𝒐𝒍𝒂𝒕𝒊𝒐𝒏𝒔 𝒂𝒏𝒅 𝒂𝒅𝒗𝒐𝒄𝒂𝒕𝒆 𝒇𝒐𝒓 𝒓𝒆𝒔𝒕𝒐𝒓𝒊𝒏𝒈 𝒄𝒊𝒗𝒊𝒍 𝒔𝒆𝒓𝒗𝒂𝒏𝒕𝒔’ 𝒃𝒆𝒏𝒆𝒇𝒊𝒕𝒔

By Tshering Yangden

Member of Parliament (MP), Naiten Wangchuk of Economic and Finance Committee (EFC) highlight Pay Structure Reform Act (Amendment) Bill during the ongoing winter session of EFC member, MP Naiten Wangchuk pointed out issues in the current laws that affect parliamentary benefits, civil service perks, and allowances for embassies, missions, and consulates general (EMC).

He explained that the provisions in the Pay Structure Reform Act 2022 and the Pay Revision Act 2023 directly conflict with the National Assembly Act 2008 and the Parliamentary Entitlement Act 2008, as well as Article 20 (8) of the Constitution, which prohibits executive orders or notifications that go against parliamentary laws.

He also mentioned that the finance ministry’s notification violated Article 20 (8) of the Constitution, which says, “The Executive shall not issue any executive order, circular, rule or notification that is inconsistent with or changes any provision of the law made by Parliament or any existing law.

Naiten Wangchuk mentioned that the Pay Acts of 2022 and 2023 have created problems for civil servants, mainly concerning leave and allowances, both within the country and abroad.

The committee identified issues like prorated leave encashment, mandatory annual leave, reduced daily subsistence allowances, removal of vehicle and duty-free quotas, fluctuating exchange rates for foreign allowances, and limited access to affordable healthcare for EMC staff.

Before the Pay Structure Reform Act 2022, there was a provision to encashment of unused leave. “Now, all leave payments are prorated. Additionally, civil servants are required to take 21 days of mandatory leave annually, which is impacting critical sectors like hospitals that are already short on staff,” said Naiten Wangchuk.

The committee also highlighted that the 20 percent cut in daily subsistence allowance (DSA) for officials accompanying ministers and their equivalents goes against the constitutional and legal principle of equal pay for equal work.

Tashi Tenzin MP of Radhi-Sakteng expressed concerns about the ineligibility of DSA for travel within the Gewog and for trips over 10 kilometers where overnight stays occur at the place of origin. The committee is calling on the government to restore vehicle and duty-free quota entitlements, which were removed as part of the pay reforms. These benefits, previously considered a form of recognition for civil servants’ service, were eliminated under the new pay structure.
“This could potentially delay service delivery and also demotivate civil servants,” Said Tashi Tenzin MP of Radhi-Sakteng.

Khamdang-Ramjar MP, Namgay Dorji mentioned that 20 percent DSA is insufficient for overseas travel and that it’s time for a revision. He also emphasized the need for vehicles and the reinstatement of the vehicle quota. Currently, overtime payments are only available to civil servants in Grade S5 and below, although employees in higher grades often work additional hours. The committee has recommended extending overtime pay to all civil servants, regardless of their grade, to ensure fair compensation for extra work.

Nyishog- Saephu MP,Kuenga expressed concern over the pay structure in Bhutan’s civil service. He said, “The current structure is causing experienced civil servants to resign from their positions, which is negatively affecting the country.”
Drukjeygang-Tseza MP, Sonam Dorji shared that instead of providing better support system to encourage the civil servants, their perks have been taken away leading to bigger problems like higher attrition rate.

Kamal Bahudur Gurung MP of Kilkhorthang-Mendrelgang expressed concerns about the 2022 Pay Structure Reform has not only affected the civil servants but also local government employees, thus supporting EFC.

Tshewang Rinzin, MP of South Thimphu mentioned that Royal Civil Service Commission (RCSC) recently implemented the policy whereby if civil servants do not take their leave, they can accumulate it, but they will not receive cash for unused leave. He asked, “How will the civil servants be motivated with this perks taken away?”

Bartsham-Shongphu MP, Rinchen Wangdi suggested integrating allowances into basic pay to improve pension plans and simplify the system. He emphasized that the reforms should aim to restore civil servants’ conditions to pre-pandemic levels by encouraging and retaining talented personnel.

Namgay Wangchuk, MP of Lingmukha-Toedwang, said that if civil servants work outside of regular hours or during off-hours, they usually receive extra payment. However, the new reform has affected leave policies as well. Previously, if employees don’t use their leave quota, they could convert it to cash, but now they must take holidays. Additionally, individuals who were not required to stay on holidays are now expected to do so, which affects the ability to provide services to the public.

Finance Minister, Lekey Dorji, stated that the motion does not align with the Constitution. According to Article 30, Section 2, only the Pay Commission has the authority to make changes to pay structures, allowances, benefits, and other emoluments. He also mentioned that the Office of the Attorney General (OAG) has said the motion is not legal and that opinions may need to be sought from the Judiciary.

Lhakpa Tshering Tamang, MP of Serigithang-Tsirang Toed also shared concerns over the increasing number of employee resignations, as well as issues related to their vehicles, duty-free quotas, and leave encashment. He also mentioned the overtime payment for workers and the DSA for local government employees. He suggested that ESP and GSP should be regularized too. Additionally, he pointed out that before, Royal Bhutan Police (RBP) officers who went on duty received only 20 percent, and questioned what would happen if they were given 100 percent instead.

The committee reported that EMC staffs have been particularly affected by the recent pay reforms. With all foreign service-related allowances converted to US dollars, these employees are facing reduced allowances due to fluctuating exchange rates. Additionally, EMC staffs have been unable to access healthcare benefits due to the high co- payments required for insurance. The committee urges that these issues be addressed promptly, as they directly impact the morale and welfare of those working abroad. Naiten Wangchuk stated that these challenges have demotivated public servants, disrupted essential services, and slowed down the implementation of the 13th Plan.

The House instructed the relevant committee of the National Assembly to review the Civil Service Reform Act 2022.
The discussion on November 21 also raised concerns about the constitutionality of amending the Pay Structure Reform Act, particularly highlighting Article 30 of the Constitution, which addresses the formation of the Pay Commission and its authority to revise the salary structure, allowances, benefits, and other emoluments.