"The implementation of these recommendations will not affect inflation. The recommended pay scale has been hiked in line with the increasing size of the budget over the past few years," he told reporters.

The 17-member body, headed by former central bank governor Mohammad Farashuddin, handed its recommendations to the minister on Sunday. It proposes Tk 80,000 as highest basic pay and Tk 8,200 as the lowest.

In the new pay scale, which according to Muhith will be effective from Jul 1, 2015, a freshly recruited first class government officer will get a monthly basic pay of Tk 25,000, which is now Tk 11,000.

Planning Minister AHM Mustafa Kamal had earlier said that he feared that the salary hike would fuel inflation.

He had suggested raising the salaries of public servants in stages to keep market conditions stable.

According to the latest figures of the Bangladesh Bureau of Statistics, inflation was at 6.21 percent on a point-to-point basis in November this year.
In his budget for the 2014-15 fiscal, the finance minister had said that inflation would be kept below 7 percent.

Speaking to reporters on Sunday, Muhith said that the new pay scale would increase government expenses by 63.7 percent but that would not be a problem.

"The government has sufficient resources. Implementing these suggestions will not affect inflation."

The minister said that apart from reviewing the pay scale, the commission also proposed some administrative reforms, to be implemented in phases.

Public servants are already entitled to 20 percent dearness allowance, effective since July, 2013.