BANGLADESH UNIVERSITY OF

PROFESSIONALS
Mirpur Cantonment, Dhaka – 1216

Term Paper on
"Remuneration gaps – Bangladesh Public vs. corporate sector, its impact and ways to address
the challenges.”

Human Resource Management (HRM 8402)

EMBA, Faulty of Business Studies
Bangladesh University of Professionals (BUP)

Submitted To
Brig. Gen Mahboob Sarwar
SPP, ndc, afwc, psc, G+, MBA, PhD (Retd)
Faculty of Business Studies
Bangladesh University of Professionals (BUP)

Submitted By:
GROUP – 06
Name ID
Sumaia Afroz Shampa 23230333099
Md. Mahedi Hasan Shawon 23230333083
Sharmin Sultana 23230333107
Md. Mizanur Rahman 23230333084
Radhone Mahmodh Lisan 23230333093
Mongthowaing Me Rakhain 23230333075
 ACKNOWLEDGEMENT

The writing of this paper has been one of the most significant academic challenges I have
ever had to face, all praises to Almighty Allah. Subsequently, without the support, patience
and guidance of our respected course instructor, the study would not have been completed
properly. It is to him that I owe my deepest gratitude. With profound regards I gratefully
acknowledge our respectful course instructor for his generous help and day to day
suggestions during preparation of the paper. I would also like to remember my classmates
who helped during few difficulties. Conducting the study under the guidance of our respected
teacher was a valuable experience for us.
 LETTER OF TRANSMITTAL

18 April 2024

Brig Gen Md Mahboob Sarwar(Retd)

Professor
Faculty of Business Studies
Bangladesh University of Professionals

Subject: Submission of Term Paper

Dear Sir,
I, hereby, submit my term-paper on behalf of group no-6, a part of the course (Course title:
Human Resource Management, Course Code: HRM 8402) on “Remuneration Gaps-
Bangladesh Public vs corporate sector, its impact and ways to address the challenges” as per
the instructions. We have tried to reach your expectations by making this term paper
informative with clarity.

With the hope of gathering your acceptance and appreciation, which will inspire and motivate
us a lot, I have tried to make this paper worthwhile.

We shall be highly obliged if you are kind enough to receive this paper and provide valuable
judgment.

Yours Sincerely,

Sumaia Afroz Shampa

Group Leader
On behalf of Group No-6
ID-23230333099, Sec-B
MBA (Prof) Batch-33
Bangladesh University of Professionals
Table of Contents

ACKNOWLEDGEMENT ..................................................................................................... 2

LETTER OF TRANSMITTAL .......................................................................................... 3

ABSTRACT.......................................................................................................................... 5

1. Introduction ....................................................................................................................... 6

1.1 Background of the study .............................................................................................. 6

1.2 Objectives of the study ................................................................................................ 8

2. Literature Review .............................................................................................................. 8

3. Methodology ..................................................................................................................... 9

4. Analysis & Findings ........................................................................................................ 10

4.1 Analysis ..................................................................................................................... 10

4.2 Findings..................................................................................................................... 17

5. Conclusion & Recommendations ..................................................................................... 22

5.1 Conclusion ................................................................................................................ 22

5.2 Recommendation ....................................................................................................... 23

References........................................................................................................................... 24

Appendix ............................................................................................................................ 24
ABSTRACT

Compensation is one the most important functions of human resource management (HRM).
This paper examines the compensation hole between the general population and confidential
areas in Bangladesh, expecting to comprehend the differences in pay levels and their hidden
causes. The pay gap has a significant impact on employee motivation, productivity, and the
economy. Remuneration gaps between the public and corporate sectors are a significant
concern in many countries, including Bangladesh. The enduring issue of remuneration
disparities between Bangladesh's public and corporate sectors significantly affects employee
motivation, job satisfaction, and broader socio-economic progress.

Using data from the Bangladesh Bureau of Statistics' Quarterly Labor Force Survey (QLFS)
for 2016-17, we initially analyze the likelihood of employment within specific sectors
through the sector choice equation. Subsequently, we proceed to estimate both the
conditional and unconditional wage differentials between government employment and other
sectors. Our analysis of government sector employment is significantly influenced by
educational qualifications, while individuals from rural areas are predominantly engaged in
marginal sectors such as individual proprietorship.

To resolve this issue, information from different sources, for example, government reports,
scholastic examinations, and studies are dissected to analyze pay designs, benefits, and
different motivators presented in the two areas. In addition, qualitative insights from
employee and human resource professional interviews are incorporated to provide a
comprehensive comprehension of the factors that influence pay disparities.

According to the findings, there is a significant pay disparity in Bangladesh between the
public and private sectors, with private sector employees typically receiving higher
compensation packages than public sector employees. A few variables add to this hole,
remembering contrasts for hierarchical designs, subsidizing systems, execution-based
motivations, and regulatory imperatives in the public area. But in terms of the government
benefits, pension, gratuity and security, there are many benefits in government jobs, where
these are not available in 95% private sector jobs. And mental stress is much less in
government jobs than in private jobs.
Also, the review features the effect of this compensation hole on representative spirit, ability
maintenance, and generally authoritative viability. Tending to this uniqueness requires
complex mediations, remembering changes for public area pay structures, upgrades in
execution assessment frameworks, and drives to improve the engaging quality of public area
work.

In conclusion, for equitable compensation practices, the development of a motivated

workforce, and socioeconomic development in Bangladesh, closing the pay gap between the
public and private sectors is crucial. This examination gives experiences that can illuminate
policymakers, managers, and different partners in planning systems to resolve this major
problem. To implement effective reforms and create a more balanced and competitive labor
market in the country, additional research and coordinated efforts are required.

1. Introduction

1.1 Background of the study

Public-sector workers, including teachers and military personnel, receive salaries directly
from the state, whereas those in the private sector are employed by private enterprises.

According to the Office for National Statistics (ONS), private sector wages surged by 6.9%
between August and October 2022, surpassing the 2.7% growth observed in the public sector.
This marked one of the most significant discrepancies recorded between the two sectors.
(Reuben, 2022)

However, both increments remain significantly below the current inflation rate, indicating a
widespread challenge of wage stagnation amidst rising prices.

The labor market in Bangladesh exhibits a notable prevalence of informal employment

opportunities. According to the Quarterly Labor Force Survey (2016-17), approximately 85
percent of total employment falls within the informal sectors, mirroring trends commonly
observed in developing nations (BBS 2018, ILO 2014). Particularly, the private sector
significantly leans towards informal job arrangements. This trend can be attributed to the
contrasting nature of the public and private sectors, where the former tends to offer formal
employment structures, including long-term contracts, pension plans, paid leave, and sick
leave, while the latter is characterized by informality, lacking certain job benefits, and often
featuring unpredictable working conditions (Gutierrez, 2019). In addition to the prevalence of
informal employment, another noteworthy characteristic of the Bangladesh labor market is
job mobility, where individuals transition between sectors, moving from public to private or
vice versa. Data reveals a stark contrast in job mobility rates: transitioning from the private
sector to the public sector is notably infrequent, accounting for only 3.5 percent of cases,
whereas transitions from the public sector to the private sector constitute slightly over 36
percent.

The same research study also revealed that government employees tend to remain in their
current positions for significantly longer durations, with a median tenure of approximately 15
years. Public sector workers demonstrate a stronger preference for long-term employment
contracts compared to their counterparts in other sectors. These findings suggest the presence
of labor market rigidities within the public sector or unique constraints faced by government
employees that differ from those encountered in the private sector. Moreover, there may be
observable patterns within a dynamic general equilibrium model.

Given the significance of job mobility in the labor market, wage disparities among employees
may vary over time, both within and across sectors, as highlighted by Bales and Rama
(2001). However, it's crucial to pay attention to the phenomena of incentive-driven job
selection and the rigidity associated with these choices. While individuals in both the public
and private sectors select jobs based on their preferences and comparative advantages, job
switching is more prevalent in the private sector than in the public sector.

The recent shift in the composition of public sector benefits has reversed the trend of job
switching, making government positions increasingly attractive in Bangladesh. Analysis of
various National Pay Scales (NPS) indicates a consistent upward revision of public sector
wages under each political regime, with the most recent NPS 2015 doubling salaries across
all scales. This surge in public sector remuneration has significantly heightened the appeal of
government jobs, evident in the surge in applications.
However, while wages play a crucial role in incentivizing public sector employment,
management practices in this sector differ markedly from those in the private sector. Soft
incentives such as autonomy often outweigh hard incentives like monitoring and monetary
benefits. Non-wage benefits, including social status and dignity, also sway job seekers
towards the public sector (Glinskaya, 2022)

This study aims to explore the wage premium between public and private sector jobs in
Bangladesh, considering the formal status of employment. While acknowledging the
presence of unobservable incentives, such as the desire for social status, the study focuses on
observable factors, primarily wages, for comparison. Unlike previous studies, this research
delves into the heterogeneous nature of private sector jobs and employs decomposition
techniques to analyze the wage gap between public and private sectors within the context of
employment formality.

1.2 Objectives of the study

a. To explore the differences between public and private sector of Bangladesh with respect to
overall status.
b. To put forward policy implications for overall improvement of the remuneration in public
and private sector of Bangladesh.

2. Literature Review
Remuneration refers to the compensation or payment provided to an employee in exchange for their
work or services rendered to an organization. It encompasses various forms of financial rewards,
benefits, and perks offered to employees as part of their employment package. This includes salary or
wages, bonuses, commissions, allowances, health insurance, retirement benefits, stock options, and
other incentives. This is an important part of the employer-employee relationship because it allows
employees to be recognized and rewarded for their contributions, motivates them to perform at their
best, and fosters a positive work environment that promotes individual and organizational success. On
the other hand the term "remuneration gap" describes the variation or difference in pay scales between
various employee groups or economic sectors. The difference in compensation and perks between the
public and corporate sectors is commonly referred to as the "remuneration gap" in Bangladeshi
contexts.
The pay disparity that exists in Bangladesh between the public and private sectors can be significant.
Government pay scales, which may not always keep up with changes in the cost of living or inflation,
are generally used to determine salaries in the public sector. Therefore, salaries in the public sector
may not be as high as those paid by corporate-sector employers, especially in fields where there is a
high demand for skilled workers. In contrast, salaries in the private sector are frequently influenced by
market demand, industry growth, and competition for talent. Industries such as finance,
telecommunications, technology, and manufacturing may pay higher wages and provide better
benefits than equivalent positions in the government. Studies consistently highlight significant
differences in remuneration levels between government jobs and the corporate sector in Bangladesh.
Government employees often receive lower salaries and fewer benefits compared to their counterparts
in the corporate sector (Hossain et al., 2017). Factors contributing to this gap include rigid salary
structures, limited opportunities for performance-based incentives, and bureaucratic inefficiencies in
the public sector (Rahman & Uddin, 2020). The remuneration gap between government jobs and the
corporate sector has several detrimental effects. Firstly, it exacerbates brain drain, with skilled
professionals opting for lucrative opportunities in the corporate sector, leading to a talent drain from
critical public service sectors (Ahmed & Mahmood, 2019). This brain drain undermines the capacity
and effectiveness of government institutions, hindering service delivery and development initiatives
(Hasan et al., 2021). Additionally, remuneration disparities contribute to employee dissatisfaction, low
morale, and reduced productivity in the public sector (Kabir & Alam, 2018).
Several approaches can be taken to address the challenges. One approach to addressing remuneration
gaps is through comprehensive reforms in government remuneration policies. This may involve
revising salary structures to align with market rates, introducing performance-based incentives, and
enhancing benefits packages to attract and retain talent in government jobs (Islam & Hossain, 2020).
Improving transparency and accountability in government remuneration systems is crucial. This
includes conducting regular salary reviews, benchmarking government salaries against the private
sector, and ensuring equitable distribution of resources for employee compensation (Rashid et al.,
2019). Investing in capacity-building initiatives, including training and skills development programs,
can enhance the value proposition of government jobs and make them more competitive with the
corporate sector (Siddique et al., 2021). By investing in human capital development, the government
can improve the efficiency and effectiveness of public service delivery. Collaboration between the
public and private sectors, particularly through PPPs, can help to address remuneration gaps. By
leveraging private sector resources and expertise, PPPs can enhance the quality of public service
delivery while offering competitive remuneration packages to employees (Haque & Khan, 2020).

3. Methodology
Research Methodology is a structured and scientific approach used to collect, analyze and
interpret quantitative or qualitative data to answer research questions or test hypotheses. A
research methodology is like a plan for carrying out research and helps keep researchers on
track by limiting the scope of research. A good research methodology also helps ensure the
reliability and validity of the research findings. There are three types of research
methodology-quantitative, qualitative and mixed-method which is based on the research
objectives.
In this paper, data is collected by primary and secondary sources as it is well known that
primary sources of data collection are on ground collection by sampling, questionnaire
method, in-person, web, papers etc. To get the most valid and practical information, primary
sources of data is more reliable than that of secondary sources of data.
Again, in case of finding a valid outcome in a short period of time, quantitative research
method is useful which focuses on measuring and testing numerical data on the other hand,
quantitative research methodology examines the opinions, behaviors and experiences of
people. It collects and analyzes words and textual data. In this paper, quantitative research
method is used which requires larger participants but still more reliable. To support this
paper, few of the previous papers are investigated as a part of quantitative research.

4. Analysis & Findings

4.1 Analysis
Public Sector:

People enter in public sector jobs through BCS (Bangladesh Civil Service) examination
conducts by the members of PSC (Public Service Commission) who enjoy the amenities
comparable to the Judge of the Supreme Court. Every year a huge number of applicants apply
in several cadres and non-cadre post including clerks, assistants and stenographers. At present
the emerging private sector is creating so many options for various jobs, still today the
government is the biggest employer.

The first and fore most reasons of picking up public sector jobs are for security purpose,
granted as life time job, prestigious, honourable and for power. Even after the retirement one
can have the pension and move on for another job due to the merit. “It is much easier in civil
service to move up in career regardless of merit or competence”

Private Sector:
Private sector is such an area that is completely free from the instructions and control of the
government. It has its own formula, own target, particular strategy and various goals to accomplish.
Corporate, company, enterprises, business house are used as the terms of private sector. It starts the
journey mainly after the liberation War. “Historically the private sector in Bangladesh developed from
a very vulnerable base after the independence.

Private sectors are doing such works which are not done successfully to some extent by public sectors.
Today the private sectors are engaging themselves in social works such as health care, education,
lending loan, giving training and so on. Moreover, the NGOs are working productively in raising social
awareness. “Normally, NGOs are required to register with the department of social welfare, for the
purpose of claiming to be a non-profit organization”

The private sector jobs are more attractive than public sector jobs to the young, fresh graduates.
Attractive facilities, compensations, high salary, good as well as convenient working environment
services are responsible to become the first choice of the job seekers. Private sectors ensure the high,
good quality of working environment which motivates the people to work with great energy.

Public Private Partnership

The process of privatization emerged in 1993. Both sectors agreed to work together under some
policies and regulations. Today private and public sectors is working under one roof for the welfare of
the national economy. “Public enterprise financial losses, poor performance, inefficiency and
subsidization create pressure on the national exchequer, weaken the country’s financial system and
reduce the competitiveness of the country’s private sector. Many public organizations are turning into
private organizations due to lack of proper direction especially for financial reasons. Such
organizations face random losses and create countless plights for themselves. Mainly due to the
continuous losses and to save the country’s economy both areas approve to collaborate with each other.

The Bangladesh National Pay Scale is a system of pay grades for government employees in
Bangladesh. It was introduced in 1973 and has been revised several times since then. The current
National Pay Scale is the 8th, which was implemented in 2015.

The National Pay Scale sets out a range of basic salaries for different grades of government
employees. The basic salary is the starting point for calculating an employee’s overall salary, which
includes allowances and other benefits. The basic salaries in the National Pay Scale range from 8,250
BDT (lowest) to 78,000 BDT (highest). Also sets out a system of increments for government
employees. Increments are awarded annually based on an employee’s performance. The amount of the
increment depends on the employee’s grade and performance.
It is a comprehensive system of pay for government employees in Bangladesh. It provides a clear
framework for setting salaries and allowances, and it ensures that government employees are paid
fairly and consistently.

Here is a table of the basic salaries in the 8th National Pay Scale:

SL Position/Designation Grade Pay Scale (BDT)

1 Secretary/Chief Secretary 1st Grade 78,000 (Assigned)
2 Additional Secretary/Equivalent 2nd Grade 66,000-76,490
3 Joint Secretary/Equivalent 3rd-4th Grade 56,500-74,400
4 Deputy Secretary/Equivalent 5th Grade 43,000-69,850
5 Deputy Director/Equivalent 6-8 Grade 35,500-67,010
6 Assistant Director/Equivalent 9th Grade 22,000-53,060
7 Administrative Officer/Equivalent 10th Grade 16,000-38,640
8 Estate Inspector 11th Grade 12,500-30,230
9 Asst. Superintendent 12th Grade 11,300-27,300
10 Computer operator/Imam 13th Grade 11,000-26,590
11 Asst. Security Inspector 14th Grade 11,000-26,590
12 Car Driver-Office Asst. 15th-20th Grade 8,250-23,490

Besides, In the private sector, salaries and bonuses are often tied to performance, profit generation,
and cost savings. Employees who contribute to the bottom line may be rewarded with higher
compensation, incentives, and opportunities for growth.

This profit-driven approach can foster a competitive and innovative environment. Employees are
motivated to seek efficiencies, drive revenue, and contribute to the overall success of the business.

Below is a description of a well-known group of company's (ORION GROUP) pay scale:

Corporate Overview:

ORION GROUP is a leading conglomerate in Bangladesh over the years. With the support of a
highly skilled management structure and 20,000 dedicated professionals, ORION has achieved a
degree of success that is unparalleled in country’s business history.
ORION is the market leader in Pharmaceuticals and Cosmetics & Toiletries sectors over the years in
the country. Besides these, ORION has extensively focused on Infrastructure Development and Power
Generation businesses through major investment undertakings and significantly contributed to the
country’s national economy’s stability through the right business to business strategy.

▪ Orion has constructed the first PPP and the LONGEST flyover in the country on BOOT; 11.8
km “Mayor Mohammad Hanif Flyover”;

▪ Orion has executed the TALLEST Building “City Centre”; a 40-storied commercial complex
cum car parking in Bangladesh;

▪ Orion is currently setting up the BIGGEST pharmaceutical complex (Pharma Park) in

Bangladesh;

▪ Orion has completed FASTEST HFO-based power projects (3 x 100 MW) in the country with
brand new machines (Wartsila OY) out of which 2 were just constructed in record 9 months
from contract signing;

▪ Orion is implementing the LARGEST single unit power plant 4x680 MW Ultra Supercritical
Coal based IPPs in the country;

▪ Orion owns the BIGGEST Mushroom growing, processing & freezing plant in the country,
produces 100% export-oriented ‘Baby Button Mushroom’;

Pay Scale of ORION group

SL Position/Designation Grade Pay Scale (BDT)

1 Company Chief Secretary 1st Grade 500,000-550,000
nd
2 Executive Director 2 Grade 450,000-480,000
rd
3 SVP (Senior Vice President) 3 Grade 350,000-400,000
4 VP (Vice President) 4th Grade 300,000-370,000
5 AVP (Asst. Vice President) 5th Grade 200,000-300,000
6 Manager 6th Grade 130,000-200,000
7 Sr. Deputy Manager 7th Grade 100,000-130,000
8 Deputy Manager 8th Grade 80,000-110,000
th
9 Asst. Manager 9 Grade 60,000-80,000
th th
10 Executive-Sr. Executive 10 -11 Grade 40,000-75000
11 Officer-Sr. Officer 12th-13th Grade 20,000-45,000
 Position Govt. pay scale Corporate pay scale Gap
Chief Secretary 78,000 525,000 573%
Additional Secretary/Director 76,490 450,000 488%
Joint Secretary /SVP 74,400 375,000 404%
Deputy Secretary/VP 69,850 300,000 329%
Deputy Director/AVP 67,010 250,000 273%
Assistant Director/Manager 53,060 130,000 145%
Administrative Officer/Executive 38,640 80,000 107%
Estate Inspector/Officer 12,500 20,000 60%

Remuneration Gaps

600,000
500,000
400,000
300,000
200,000
100,000
0
Govt. pay scale Corporate pay scale Gap

Chief Secretary Additional Secretary/Director Joint Secretary /SVP

Deputy Secretary/VP Deputy Director/AVP Assistant Director/Manager
Administrative Officer/Executive Estate Inspector/Officer

Remuneration Gaps (Ratio)

600,000 700%
500,000 600%
400,000 500%
400%
300,000
300%
200,000 200%
100,000 100%
0 0%

Govt. pay scale Corporate pay scale Gap

The analysis of private and public sector salaries is complex and multifaceted. It requires a nuanced
understanding of organizational goals, societal values, and the delicate balance between rewarding
talent and maintaining fiscal responsibility. National Pay scale 1997 reduced sufficiently the disparity
between the highest and the lowest salary to 10:1. In contrast, in 1991 the ratio was 11.11:1. In private
sectors like Pubali Bank Limited (PBL), Islami Bank Bangladesh Limited (IBL) and Uttara Bank
Limited (UBL) the disparity between the highest and the lowest salary were found 21.1:1, 25.29:1 and
26:1 respectively. However disparity in NPS does not ensure equity, fairness and justice to the civil
servants or employees because salaries were not sufficient to cover the cost of as well as livelihood.
The maximum salary one can draw is TK.23800 when a person is in the highest grade according to
NPS 1997. On the other hand, in private organizations, one can draw the highest amount of TK.
90500 which is more than 3.80 times the highest amount drawn as per NPS 1997.

Qualitative Data Analysis:

Thematic Analysis: Conduct thematic analysis to identify and categorize recurring themes, patterns,
and insights from the qualitative data. This analysis seems that the influence of income, along with
several other factors, on job satisfaction has not been researched as extensively as it should be. Doing
so would reduce turnover rates for many firms while increasing the happiness of workers.

Integration with Quantitative Findings: In the discussion section, integrate the qualitative findings
with the quantitative data to present a holistic understanding of wage gaps between the public &
private sectors in Bangladesh also the challenges. Identify patterns that align with both types of data
to strengthen the conclusions and implications of the research.
Graphical Representation:

There are several instances where people do not do what they say they would in a given situation.
Because of this, economists generally prefer objective variables. Unlike subjective variables,
objective variables measure preferences that have already been expressed. Many economists, even
those who support self-reported measures, believe that these measures should be taken with a grain of
salt. These measures are not always accurate for a variety of reasons. Some survey participants may
not truly understand their feelings regarding the survey, some may be unable to accurately predict
their actions in a given situation, and others may simply lie.
Age Group:

Ratio (%)
80%
60%
40%
20%
0%
30 15
Work Experience

This study has followed mixed methodology to gather relevant data. The target people are all adult to
above & most of them are service hold or businessman. Among the respondents, it is found that, most
of the employees or businessman are the key productive workers behind the success of any
organization Adolescent that means people within age group of Adult (25-35) are 44% and it is almost
close to half, the 2nd largest percentage is within the Senior group that is the people of age group
between 35-50 are the 34% and remaining 22% are the people of age group of 50 years and above.
So, it is to assure that, to get better response and relevant findings, survey is conducted on the people
who are the wheels of any organization.

Gender:

Ratio (%)

34%
Work Experience 30
Work Experience 15
66%

According to data of the survey, survey is conducted on the people, of which most of them are male &
find out if they are now which profession, what they think about it, and their comments. It also
includes top-level (the decision makers) and a good number of mid-level responsible for their
profession. So, it is found that, among the respondents, 66% are male 34% are female.
How satisfied are you with your current organization with present remuneration?
The feeling of satisfaction not being paid fairly in relation to workload has a negative impact on
motivation, according to the survey. Employees unhappy with levels of pay were more inclined to
change jobs (37%) than employees who felt their salary was fair (18%). On the other hand, employees
were prepared to trade off lower salary against certain benefits.

For how many years are you working your current organization? Is it enough to get a handsome
salary?
Most people are working 2-7 years in the private sector which are entire service career after
graduation but in public sector, once they start it’s stable until their retirement. Some organizations
motivate their staff to pursue further education, certifications, or training. Successful completion of
such programs can result in salary increments.

Have you personally experienced or observed any instances of remuneration disparity between
public and corporate companies?
Yes, I found that almost all employees including teachers and officers are facing constraints to
maintain their families with income from their job. About 65.5% of their expenditure is getting from
their salaries. More than 36% of the employees (including teachers and officers) failed to manage
their family expenditures with income from job and extra job.

What measures could be taken to address minimize remuneration gaps between public &
private companies in Bangladesh?
a) Salary Revision and Equalization
b) Performance-Based Pay
c) Benefits Enhancement
d) Transparent Pay Structures
e) Addressing Corruption and Nepotism
f) Regular Review and Monitoring
It is already mentioned that, for analyzing the data, mixed methodology has been used in the report. A
questionnaire has been prepared and according to the response of the respondents, the graphical
representation is shown above with relevant findings.

4.2 Findings

Here in the study, we find Private sector Remunerations are comparatively high than
Government Sector in Bangladesh. Beside the basic remunerations, there are other facility
like Pension, accommodation, transportation facility etc are considered which government
employees get facilitated. Job Security & Job Stress are also very important determinant for
career choice. Considering all these things peoples are more interested in government job
rather than private sector. If we take Banking sector for example, a Junior Officer of private
bank get higher salary then a senior Officer of Government bank but people leaving private
bank job frequently where Government bank job is prime choice of many job seekers. We
can compare two sectors by some recent remuneration and other benefit data’s of the two
sector.

Government Sector: Salaries for the position Government Officer in Bangladesh range from
16,300 BDT (starting salary) to 56,200 BDT (maximum salary). It should be noted that the
given figure is not the legally mandated minimum wage; rather, it represents the lowest figure
reported in a salary survey that included thousands of participants and professionals from all
regions of the Country.
With an average salary of 33,800 BDT, half of the professionals who work as Government
Officer in Bangladesh earn less than this amount, and the other half earn more. The average
salary denotes the middle value of salaries.

Pay Scale Structure: To provide a better understanding of expected salaries, we categorized

the frequently occurring salaries into different ranges. This approach provides a more precise
representation of salary distribution for the job title Government Officer in Bangladesh
compared to simply calculating the average. The majority of reported salaries, approximately
65%, fall within the range of 20,200 BDT to 29,400 BDT. About 20% of salaries are below
the 20,200 BDT mark, while 10% fall within the range of 29,400 BDT to 33,500 BDT. Only
5% of individuals have salaries exceeding 33,500 BDT.
Employees with less than two years of experience earn approximately 18,500 BDT. While
someone with an experience level between two and five years is expected to earn 24,700
BDT, 34% more than someone with less than two years’ experience. Moving forward, an
experience level between five and ten years lands a salary of 36,400 BDT, 48% more than
someone with two to five years of experience. Additionally, professionals whose expertise
span anywhere between ten and fifteen years get a salary equivalent to 44,400 BDT, 22%
more than someone with five to ten years of experience. If the experience level is between
fifteen and twenty years, then the expected wage is 48,400 BDT, 9% more than someone with
ten to fifteen years of experience. Lastly, employees with more than twenty years of
professional experience get a salary of 52,400 BDT, 8% more than people with fifteen to
twenty years of experience.
How do education levels affect salaries?
Displayed below is the average salary variance between different education levels of
professionals working as Government Officer.
High School -22,700 BDT
Certificate or Diploma +18% 26,600 BDT
Bachelor's Degree +45% 38,600 BDT
Master's Degree +31% 50,600 BDT
Percentage increase and decrease are relative to the
We all know that higher education equals a bigger salary, but how much more money can a
degree add to your income? We broke down salaries by education level for the position
Government Officer in order to make a comparison.
We all know that higher education equals a bigger salary, but how much more money can a
degree add to your income? We broke down salaries by education level for the position
Government Officer in order to make a comparison.
Level 1: High School
Employees at this education level have an average salary of 22,700 BDT.
Level 2: Certificate or Diploma
At this level, the average salary becomes 26,600 BDT, 18% more than the previous level.
Level 3: Bachelor's Degree
At this level, the average salary becomes 38,600 BDT, 45% more than the previous level.
Level 4: Master's Degree
At this level, the average salary becomes 50,600 BDT, 31% more than the previous level.
Average Annual Salary Increment Percentage / Government Officer / Bangladesh
How much are annual salary increments in Bangladesh for individuals working as
Government Officer? How often do employees get salary raises?
Individuals working as Government Officer in Bangladesh are likely to observe a salary
increase of approximately 10% every 28 months. The national average annual increment for
all professions combined is 5% granted to employees every 28 months.
The term Annual Salary Increase usually refers to the increase in 12 calendar month period,
but because it is rare that people get their salaries reviewed exactly on the one-year mark, it is
more meaningful to know the frequency and the rate at the time of the increase.

How to calculate the salary increment percentage?

The annual salary Increase in a calendar year (12 months) can be easily calculated as follows:
Annual Salary Increase = Increase Rate x 12 / Increase Frequency

Salary Vary with Experience ( public Sector)

50000
5
2.8
40000
1.8
3
30000
4.4
2
20000 44400
2.4
2 36400
24700
10000 18500

0
0-2 Years 2-5Years 5-10 Years 10-15Years

Private Sector: A Private Sector Executive working in Bangladesh will typically earn around
404,600 BDT per year, and this can range from the lowest average salary of about 187,300
BDT to the highest average salary of 645,800 BDT.
How Much Does a Private Sector Executive Make in Bangladesh?
A Private Sector Executive working in Bangladesh will typically earn around 404,600 BDT
per year, and this can range from the lowest average salary of about 187,300 BDT to the
highest average salary of 645,800 BDT.
Average Annual Salary -404,600 BDT
Average Monthly Salary -33,716 BDT
Lowest Annual Salary- 187,300 BDT
Lowest Monthly Salary- 15,608 BDT
Highest Annual Salary -645,800 BDT
Highest Monthly Salary- 53,816 BDT
These are average salaries for a Private Sector Executive in Bangladesh and include benefits
such as housing and transport. It's also possible for a Private Sector Executive to earn more or
less than the average salaries shown above.
Private Sector Executive salaries will vary a lot based on your experience, location, skills,
and gender. Keep reading below to research more data on each of these areas.
Percentiles
Percentiles are similar to the median salary, but instead of looking at the middle value, they
look at the values in the top and bottom half of the distribution.
For the average Private Sector Executive salary in Bangladesh, 25% of the population are
earning less than 283,400 BDT while 75% of the population earn more than 283,400 BDT.
75% of the population earn less than 585,900 BDT, and 25% of the population earn more
than 585,900 BDT. Like the median salary, the 25th and 75th percentile salaries can be used
to determine which quartile you fall into so that you know whether you are being paid well
enough compared to others in your profession and location.
Salary Comparison on the basis of Experiences:-
0 - 2 Years’ Experience. A Private Sector Executive in Bangladesh that has less than two
years of experience can expect to earn somewhere in the region of 210,500 BDT.
2 - 5 Years’ Experience. With two to five years of experience the average Private Sector
Executive salary would increase to 282,300 BDT
5 - 10 Years’ Experience. From five to ten years of experience as a Private Sector Executive,
the average salary would be 417,100 BDT.10 - 15 Years’ Experience. Once you have more
than ten years of experience the average salary reaches around 510,300 BDT.
15 - 20 Years’ Experience. A Private Sector Executive with 15 to 20 years of experience can
earn an average of 556,000 BDT.
20+ Years’ Experience. For a Private Sector Executive with more than 20 years, the expected
average salary increases to 602,700 BDT.
Salary Differ to education level:-
High School. A Private Sector Executive in Bangladesh with a high school education can earn
an average salary of 261,300 BDT.
Certificate or Diploma. A Private Sector Executive in Bangladesh with a certificate or
diploma education can earn an average salary of 307,400 BDT.
Bachelor's Degree. A Private Sector Executive in Bangladesh with a bachelor's degree
education can earn an average salary of 445,100 BDT.
Master's Degree. A Private Sector Executive in Bangladesh with a master's degree education
can earn an average salary of 581,000 BDT.

SALARY VARY WITH EDUCATION LEVEL (PUBLIC

SECTOR)
60000
50000
40000
30000
50,000
20000 38,000
10000 22000 26,000

0
High School Certificate or Diploma Bachelor's Degree Master's Degree

Yearly Salary vary with experience

(Private Sector)
600000
500000
400000
300000 556,000
510,300
200000
282,300
100000 210500
0
0-2 Years 2-5 Years 5-10 Years 10-15 Years

5. Conclusion & Recommendations

5.1 Conclusion

In conclusion, the examination of remuneration gaps between the public and private sectors in
Bangladesh reveals significant disparities, with private sector employees generally enjoying higher
salaries. However, it's essential to acknowledge the multifaceted nature of compensation, which
extends beyond basic wages to include factors such as job security, benefits, and overall job
satisfaction.
Government jobs in Bangladesh offer stability, social status, and various non-monetary benefits such
as pensions, accommodation, and transportation facilities. These perks, coupled with relatively lower
job stress, contribute to the attractiveness of public sector employment despite lower monetary
compensation compared to the private sector. On the other hand, the private sector often pays more,
but it may also cause more stress and employment uncertainty. This is especially true in sectors like
banking, where people prefer government jobs because of the better benefits and employment
stability, even when the salary are lower.

Education also plays a significant role in determining salary levels in both sectors, with higher
degrees correlating with higher salaries. However, the premium placed on education differs between
the public and private sectors, with the private sector generally offering higher rewards for advanced
degrees.

The findings suggest a need for policymakers to address the remuneration disparities between the two
sectors to ensure equitable compensation for all employees. This could involve revisiting salary
structures, enhancing benefits packages in the private sector, and implementing measures to improve
job security and reduce stress in both sectors.

Overall, addressing remuneration gaps between the public and private sectors is essential for
promoting fairness, attracting skilled workers to both sectors, and fostering economic growth and
stability in Bangladesh.

5.2 Recommendation
Few Recommendations are suggested as per the analysis and findings of the overall study:

a) The national pay scale can be revised and steps to be taken to bring overall
equalization.
b) A pay system like performance-based pay can be introduced.
c) Benefits maybe enhanced as well as the pay structures should be made transparent.
d) Nepotism and corruption should be addressed.
e) Government may invest in key sectors.
f) Periodical measurements should be taken to check the efficiency of the public and
private sector.
References
a. https://www.salaryexplorer.com/average-salary-wage-comparison-bangladesh-
government-officer-c18j10424
b. https://worldsalaries.com/average-private-sector-executive-salary-in-bangladesh/
c. Al Kabir, M. A., & Hossain, M. S. Effect of HR Practices in Developing Employee Resilience: A
Study on Employees of Private Commercial Banks in Bangladesh.
d. Rahman, M. M., & Uddin, M. N. (2020). Wage Discrimination and Its Impact on Job
Satisfaction of the Public Servants: A Case Study on Bangladesh Civil Service. Global
Disclosure of Economics and Business, 9(1), 1-14.
e. Hasan, M. K., et al. (2021). Employee Motivation and Job Satisfaction: A Comparative Study
Between Government and Non-Government Employees in Bangladesh. Journal of Public
Administration and Governance, 11(1), 123-136.
f. Kabir, M. S., & Alam, M. N. (2018). Human Resource Management Practices in Selected
Public and Private Universities of Bangladesh: A Comparative Study. International Journal of
Management and Humanities, 3(1), 20-30.
g. Islam, M. M., & Hossain, M. S. (2020). Employee Performance Appraisal System: A Study on
Private Commercial Banks in Bangladesh. Journal of Business and Economic Analysis, 3(2),
12-26.
h. Rashid, M. M., et al. (2019). Impact of Human Resource Management Practices on Job
Satisfaction: A Study on Private Commercial Banks in Bangladesh. Journal of Business and
Retail Management Research, 13(2), 75-86.
i. 7)Siddique, M. A. A., et al. (2021). Impact of Training and Development on Employee
Performance: A Case Study of Bangladeshi Private Commercial Banks. Journal of Business
and Economic Analysis, 4(1), 1-15.
j. 8)Haque, M. A., & Khan, M. M. (2020). Factors Affecting Job Satisfaction of Bank Employees:
A Study on Private Commercial Banks in Bangladesh. Asian Journal of Social Sciences and
Humanities, 9(1), 167-181.

Appendix
Questionnaire:
1. What is your current employment status?
a) Employed in a public company
b) Employed in a corporate/private company √
c) Other (please specify)

2. How long have you been employed in your current company?

a) Less than 1 year
b) 1-3 years
c) 3-5 years√
d) More than 5-10 years

3. On a scale of 1 to 10, how satisfied are you with your current remuneration package?
a) Satisfied
b) Moderately satisfied√
c) Not satisfied

4. How do you perceive the remuneration packages in public companies compared to corporate
companies in Bangladesh?
a) public companies offer better remuneration
b) Corporate companies offer better remuneration√
c) There's no significant difference
d) Not sure

5. What factors do you believe contribute to remuneration gaps between public and corporate
companies in Bangladesh?
a) Government policies
b) Company profitability√
c) Education and skill level of employees
d) Gender discrimination
e) Length of service
f) Other (please specify)
6. How do you think remuneration gaps between public and corporate companies impact
overall job satisfaction and employee retention in Bangladesh?
Ans: It is generally believed that in both areas’ employees, higher pay leads to higher job satisfaction.
Many people attend college in the hopes of obtaining a high-paying job. After getting the job, many
college graduates find themselves disliking it for a variety of reasons. An accountant, for example,
may be drawn to the allure of a big four accounting firm. After working there for a time, the
accountant may realize that the high wage is not worth the amount of time necessary to maintain said
job. He then may decide to find employment at a smaller firm. This requires the worker to search for a
new job and the firm to search for a new employee.