Minimum salary in government jobs is Tk 33,000, what's the maximum?

The government has issued a gazette notification for a new national pay scale for civil servants. Under the new structure, the minimum salary in government service, including allowances, will stand at a little over Tk 33,000. Excluding vehicle benefits, the maximum salary with allowances will be nearly Tk 250,000.

The full benefits of the new pay scale will take effect after one and a half years. The basic salary will be implemented in three phases, while all allowances, including house rent, will come into effect from 1 January 2028.

This new pay scale comes after 11 years, though salaries were increased by 5 per cent annually during this period. Under the new structure, the minimum basic salary has increased from Tk 8,250 to Tk 20,000, and the maximum fixed basic salary has risen from Tk 78,000 to Tk 156,000.

Beyond this, there are special grades for the Cabinet Secretary, Principal Secretary, and Senior Secretaries. The basic salary for the Cabinet Secretary and Principal Secretary is Tk 172,000, while for Senior Secretaries, it is Tk 164,000.

The Finance Division of the Ministry of Finance issued the “Government Servants (Pay and Allowances) Order, 2026” last Thursday. However, it was published yesterday, Saturday. The order states that the new pay structure will take effect from 1 July 2026.

At a meeting of the Cabinet Committee chaired by Prime Minister Tarique Rahman on 31 August, the proposal for the new pay structure was approved.

Under the new national pay structure, the salaries of government employees will have to be determined online. To do this, the required information must be entered through the “Pay Fixation” option of the government’s iBAS++ system. After the salary is fixed, the necessary documents must be submitted to the accounts office.

To apply online, employees will need their National ID, employment information, and the mobile phone number registered with iBAS++. If someone does not have an NID, they will have to update their date of birth and other information in their employment records before applying.
Minimum Salary

The new structure retains all 20 grades of government service. At the lowest grade or step, the basic salary is Tk 20,000, with a house rent allowance of 45 per cent, calculated at the minimum applicable rate. Employees will also receive Tk 3,000 as a medical allowance, Tk 600 as a transport allowance, Tk 500 as a tiffin allowance, and Tk 150 as a mobile phone allowance.

As a result, the minimum total salary for a government employee at the district and upazila levels, in Grade 20, will be Tk 33,250. In Dhaka, the house rent allowance is 60 per cent, bringing the total salary to Tk 36,250.
It is worth noting that under the wage structure announced in 2023, the minimum wage for workers in the country’s export-oriented garment sector was Tk 12,500.

The Cabinet Secretary and Principal Secretary will receive the highest salaries under the special grade. Their basic salary will be Tk 172,000. Including a 40 per cent house rent allowance for Dhaka, Tk 4,000 in medical allowance, Tk 2,000 in hospitality allowance, Tk 500 in mobile phone allowance, and Tk 300 in laundry allowance, their total salary will amount to Tk 247,600. In addition, they receive several other benefits, including an official vehicle available around the clock.

Under the new pay structure, the basic salary in Grade 1 will be Tk 156,000. An officer in this grade will receive a total salary of around Tk 225,000.
For young people who join government service after passing the BCS examination, the basic salary in Grade 9 will be Tk 44,000. The minimum total salary in this grade will be slightly more than Tk 60,000.

Although the new pay structure will take effect from 1 July, government employees will not receive the full increased basic salary from that date. The revised basic salaries will be implemented in three phases over the two fiscal years, 2026-27 and 2027-28.

Under the first phase, until 31 December, officials in Grade 9 and above will receive 40 per cent of the increased salary in addition to their existing salary. Officials and employees in Grades 10-20 will receive 50 per cent of the increase.

Then, from 1 January to 30 June 2027, officials in Grade 9 and above will receive 70 per cent of the increase, while officials and employees in Grades 10–20 will receive 75 per cent. From July 1, 2027, 100 per cent of the salary increase will take effect.

According to sources in the Finance Division, Tk 370 billion has been allocated in the current fiscal year to provide 70 percent of the revised basic salary in two installments. The government had planned to pay the arrears, calculated from July 1, along with September’s salary. Ultimately, this will not happen.

Officials concerned at the Finance Division said the arrears will instead be paid along with October’s salary.

If an employee completes eight years in the same position without receiving a promotion and has a satisfactory service record, they will have the opportunity to receive the salary of the next higher grade in their ninth year. If they still do not receive a promotion, they may qualify for another higher grade after completing the prescribed period. However, there are limits and conditions on receiving multiple higher grades for the same position. Employees in “blocked” positions, where there is no opportunity for promotion, will also be eligible for higher grades.

For all government employees, the annual salary increase, or increment, will take effect on the first day of the fiscal year. One increment will be effective from 1 July. However, employees will not be eligible for an increment until they have completed six months of service.

Pensions for retired government officials and employees have also been increased. The increase has been set at five levels, with those receiving relatively lower pensions getting a higher percentage increase.
People receiving a net monthly pension of Tk 9,000 or less will receive a 100 per cent increase. Thus, someone currently receiving a pension of Tk 9,000 will receive Tk 18,000.

Net pensions ranging from Tk 9,001 to Tk 20,000 will increase by 75 per cent; those from Tk 20,001 to Tk 30,000 by 65 per cent; those from Tk 30,001 to Tk 40,000 by 60 per cent; and those receiving Tk 40,001 or more will receive a 55 per cent increase. However, those currently receiving a pension of Tk 40,001 or more will receive a maximum pension of Tk 70,200.

Under the new pay order, house rent allowance rates have been determined based on the employee’s workplace and grade. However, these new rates will take effect from 1 January 2028. Until then, house rent allowances will continue to be paid at the existing rates.

In the areas covered by the Dhaka North and Dhaka South City Corporations, employees in Grades 16-20 will receive a house rent allowance equivalent to 60 percent of their basic salary. For Grades 10-15, the rate will be 50 per cent; for Grades 5–9, 45 per cent; and for Grades 1-4 and above, 40 per cent.

Outside Dhaka, in the areas covered by 11 city corporations, Savar, and Cox’s Bazar municipality, employees in Grades 16–20 will receive 50 per cent; Grades 10–15, 40 per cent; Grades 5–9, 35 per cent; and Grades 1–4 and above, 30 per cent of their basic salary as house rent allowance.
In other areas, the rates have been set at 45 per cent for Grades 16–20, 35 per cent for Grades 10–15, 30 per cent for Grades 5–9, and 25 per cent for Grades 1–4 and above.

Currently, in Dhaka City Corporation areas, employees with a basic salary of up to Tk 9,700 receive a house rent allowance at a rate of 65 per cent, subject to a minimum of Tk 5,600. Those with a basic salary of Tk 9,701 to Tk 16,000 receive 60 per cent, subject to a minimum of Tk 6,400. Those earning Tk 16,001 to Tk 35,500 receive 55 per cent, subject to a minimum of Tk 9,600. For basic salaries above Tk 35,500, the rate is 50 per cent, subject to a minimum house rent allowance of Tk 19,500.

Most of the new allowances under the new pay structure will take effect from 1 January 2028.

Government employees will receive a monthly medical allowance of Tk 3,000 until they reach the age of 50. From the age of 50 years and one day until the end of their post-retirement leave, the allowance will be Tk 4,000.
For pensioners, the medical allowance has been set at Tk 3,000 up to age 50; Tk 4,000 from over 50 to 60; Tk 5,000 from age 60 years and one day to 70; and Tk 6,000 for those over 70.

If a government employee has a child with special needs, they will receive an allowance of Tk 3,000 per month per child, for a maximum of two children.

The Bengali New Year allowance will be 15 per cent of basic salary, down from the previous rate of 20 percent.

For both employed personnel and pensioners: There will be two festival allowances per year. An educational support allowance of Tk 500 per month will be provided per child up to the age of 23, for a maximum of two children. Employees in the 11th to 20th grades will receive a monthly tiffin allowance of Tk 500.

In city corporation areas: Employees in the 11th to 20th grades will be provided a conveyance allowance of Tk 600. A mobile allowance of Tk 500 will be given to those in the 5th grade and above, while those below the 5th grade will receive Tk 150.

Entertainment allowance: The Cabinet Secretary and the Principal Secretary to the Prime Minister will receive 2,000 BDT per month; Senior Secretaries and Secretaries will receive Tk 1,000; Additional Secretaries will receive Tk 900; and Joint Secretaries and equivalent status employees will receive Tk 600.

Employees working in Hill Tracts districts will receive a hill allowance of 20 per cent of their basic salary. This allowance will be a maximum of 5,000 BDT in district headquarters and sadar upazilas, and 5,500 BDT in other upazilas. In haor, island, and char areas, the special allowance will be 20% of the basic salary, capped at a maximum of 5,000 BDT.

Officers in Ninth Grade and above on deputation at government training institutions will receive a training allowance of 20 per cent of their basic salary.

In addition, risk and special allowances will be provided to various categories of employees in specialised hospitals, law enforcement agencies, prisons, fire services, the forest department, and those serving in hazardous duties.

Financing the implementation of the new pay scale is the main concern.
Zahid Hussain, former lead economist at the World Bank’s Dhaka office, told Prothom Alo, "I am thinking about how the implementation of the new pay scale will be funded. Will revenue earnings increase that much in a year and a half or two years?

Even if we assume they do, this money will end up being spent just on paying the salaries and allowances of government employees. What about the funds that need to be spent on other sectors?"

He added, "One option could be taking out loans. Another option could be cost-saving. Budget deficit is a crucial factor here. If the government borrows from Bangladesh Bank to meet the deficit, money will have to be printed, which will push up inflation. We have to see which path the government chooses to implement the new pay scale."