New pay scale: Govt employees to get increased salaries this month, allowances unchanged for now

Government employees will continue to receive allowances at the existing rates for the time being, despite the introduction of a new national pay scale. This means they will continue to receive allowances at the rates applicable on 30 June this year until a further order is issued.

The Finance Division of the Ministry of Finance issued a notification on the matter today, Monday.

The notification applies to employees of various government ministries, divisions, departments and agencies, as well as state-owned and autonomous institutions. Meanwhile, government officials and employees will begin receiving increased salaries this month.

The government has stipulated that allowances will continue to be paid as a percentage of existing basic salaries until the basic salaries set out in the Service (Pay and Allowances) Order 2026 for government employees take effect.

The notification on the pay and allowances order was issued exactly one month ago, on 19 September. The government had, however, already announced that allowances under the new pay scale would be introduced at a later date.

Under the new pay scale, the minimum basic salary has been set at Tk 20,000 and the maximum at Tk 156,000. Although the new pay scale took effect on 1 July, the government decided to implement the full salary increases for government employees in phases.

Salaries and allowances will be introduced in stages over the 2026–27 and 2027–28 financial years.

Basic salaries will be implemented in three phases: the first from 1 July to 31 December this year, the second from 1 January to 30 June 2027, and the third from 1 July to 31 December 2027. Allowances under the new pay scale will take effect from 1 January 2028.

The process of determining government employees’ salaries online under the new national pay scale is under way and is expected to be completed tomorrow, Tuesday.

Since 5 October, government employees have been entering the required information through the ‘Pay Fixation’ option in the government’s iBAS++ system.

According to Finance Division sources, government employees will receive their salaries at the increased rates at the end of this month. The necessary funds have been allocated in the budget for this purpose.