Prime Minister Khaleda Zia presided over the cabinet meeting.

Among 16 different pay categories the highest basic salary has been raised from Tk 2,300 to Tk 4,250 per month and the lowest basic salary has been raised from Tk 1,550 to Tk 2,850 per month.

Besides other allowances and benefits have also been increased. 60 percent of the basic salaries of those living in Dhaka metropolitan area and 50 percent of those living in other areas have been settled as house rents. However if housing facilities are provided by the employer, then there will be no house rent allowance. At present workers are entitled to 35 percent of their basic pay as house rents.

Instead of the previous medical allowance of Tk 400 the workers will now receive Tk 500 per month, while their conveyance allowance of Tk 80 has been raised to Tk 100. The new pay scale also provides a laundry allowance of Tk 25 for each set of uniform.

Besides, a night shift allowance of Tk 200 per month and a profit bonus of 10 percent on the company's profit yearly have also been approved, while Tk 100 for tiffin and Tk 100 will be given as risk allowance per month.

A 13-member pay commission was formed on April 6 last year. Yesterday's decisions were taken based on the commission's recommendations.

The cabinet meeting also approved Supreme Court Judges' Remuneration and Privilege (Amendment) Act.