Lower grade govt staffers may get e-payment facility by Dec

FT ONLINE

The step to bring lower-grade public servants under electronic fund transfer system by December is at the final stage.

This will ensure hassle-free salary, bonus and other fund transfer from the government's end to the III and IV class employees, who are between the 12th and 20th grades of the pay scale.

The public servants, around 0.9 million (900,000) in numbers, usually receive their monthly salaries four to five days after a month ends. The new system is expected to ensure timely payment across the country.

Presently, a deputy director assigned for pay and related services receive salaries on behalf the lower-grade employees belonging to his or her department under one treasury cheque.

"We've already started it on an experimental basis," Sabbir Ahmed, a consultant at a government project dealing with reforming of government financial system.

Some 250 III and IV government employees working at the ministry of finance (MoF) got their salaries of this month through electronic transfer.

The electronic system started its "Live Operation" in February 2011 with the objective of decreasing paper-based payment methods while encouraging electronic payment mode for secured, faster and cost-effective transactions.

This system facilitates the transmission of payments between the banks electronically, which make it faster and efficient means of inter-bank clearing over the existing paper-based system.

This is able to handle a wide variety of credit transfers such as payroll, foreign and domestic remittances, social security, company dividends, retirement, expense reimbursement, bill payments, corporate payments, government tax payments, social security payments and person to person payments.

It has been gaining increasing popularity among the corporate and government bodies.

Mr Ahmed, a consultant for the strengthening public expenditure management project, said they have been working towards beginning the services across the country by the end of December next.

He, however, said it is a challenge to implement the new system as many have no bank accounts.

He said they have been working to address the bank account issue as it is mandatory for the electronic transfer system.

Under this, the employees will get short message services and they will be able to draw salaries on the first day of the month.

An official at the controller general of accounts said this system will address many hassles the lower-grade grade employees face now.

He said if there are mistakes on the cheque, then the employees need a lengthily process to resolve it.

He also said a large number of employees allegedly pay Tk 200 each to "cashiers" of the respective departments for processing salaries.

However, the cadre officers numbering 0..2 million (200,000) receive their salaries through such transfers.