LHW Systems Review - Oxford Policy Management

LHWP – Systems ReviewFigure 7.1 Budgeted salaries for LHWs, LHSs, and drivers, FY 2003–08Source: PC-1, 2003-2008, LHWP, MoHProject allowance According to the PC-1, the five members of the DPIU are to be paid anadditional 20 percent of their basic pay each month. The DPIU can also co-opt other relatedstaff to be members of the DPIU; however, they will not be entitled to the payment of the 20percent allowance. This allowance was stopped in 2001 due to audit objections. It wasbudgeted for in the PC-1 2003–08 at Rs. 1,29.071 million, but was never reinstated. Aproposal by the Programme to award performance bonuses was also rejected by the CentralAgencies. It is difficult to see how this could have been implemented fairly, which would havecreated a risk of decreasing motivation.Training allowance A training allowance is paid to the health facility training team, of 20percent of their basic pay per month for LHW 15 months’ training. A training allowance of Rs.50 per day is also paid to LHWs for attendance at refresher training courses. The trainerswho provide the training receive Rs. 200 per day. This allowance is paid for a maximum 15days’ refresher training in one year; payment is made direct into each payee’s personal bankaccount. The claims are prepared by the DPIU.POL/FTA covered under the Transportation SystemPayments process There is a quarterly release of funds by the MoF, on the basis of anapproved Cash Plan/Work Plan. In the PC-1, the DPIUs were to have their Personal LedgerAccounts (PLAs) or to operate bank accounts in commercial banks to ensure timely andspeedy payments of salaries to all staff. However, while this was the initial arrangementunder which the Programme operated, in 2001 the district accounts were closed by theMinistry of Finance and the payments system re-centralised to the PPIU.There is a Personal Ledger Account/Special Drawings Account at each PPIU, where thefunds are deposited to pay the stipends/salaries of LHWs, LHSs, and the drivers. The PPIU,after verification of the monthly payrolls has been received from the DPIU, transfers funds tothe commercial banks, who deposit the salaries into the relevant each payee’s personalaccount. The monthly payrolls have to be approved at the district level by the EDO-H (orDHO in the Punjab). Salaries for contract staff, FTA for LHSs, and trainers; allowances arealso paid directly into staff bank accounts through the provincial payments process.44