Higher salaries for govt employees Sunday, many face complications in determining pay

The government will pay public officials and employees their salaries under the new pay structure on 1 November, along with four months of arrears. However, many government employees will not receive the increased salaries, as they have been unable to determine their pay under the new structure.

Applications were submitted to Finance Secretary Md Khairuzzaman Mazumder seeking a resolution to the complications surrounding the new pay structure, but the issues remained unresolved as of last Monday. This information was obtained from sources at the Finance Division of the Ministry of Finance.

According to Finance Division sources, not all of the 1.4 million government employees, 800,000 pensioners and 600,000 teachers under the Monthly Pay Order (MPO) scheme have been able to complete their pay fixation. In such cases, they will receive salaries under the old pay structure, while their arrears will be paid later.

The Finance Division has reportedly been unable to resolve applications submitted by several ministries and divisions—including the Finance Division itself, the Financial Institutions Division, the Ministry of Liberation War Affairs, the Ministry of Posts, Telecommunications and Information Technology, and the Ministry of Civil Aviation and Tourism—before 1 November.

An analysis of the new pay structure notification and the applications submitted shows inconsistencies in seniority and grade hierarchies when government officials and employees fix their salaries under the new system. In some cases, junior officials will receive higher salaries than their senior colleagues; in others, total earnings may decline even after promotion. Despite submitting applications to the Finance Division to resolve these problems, employees have yet to receive a solution.

The notification announcing the new national pay structure was issued on 17 September. Pay determination began on 5 October, but many officials and employees across various ministries have still been unable to complete the process. They allege that applying the pay-fixation rules has revealed inconsistencies not only in the normal grade hierarchy but also in higher-grade benefits and house rent allowances.

Complications with the iBAS++ system have added to these problems. As a result, some employees are being deprived of the financial benefits they expected, while others fear that their total earnings could fall even after promotion.

When asked for comment, Finance Secretary Khairuzzaman Mazumder declined to make any statement on the matter. However, a responsible Finance Division official, speaking to Prothom Alo on condition of anonymity, said the situation had arisen because those involved in preparing and implementing the notification lacked sufficient knowledge of the relevant issues. The official added that work was under way to resolve the problems and that advice was being sought from people with previous experience.

Grade hierarchy reversed during pay determination

Under the National Pay Structure 2026, the starting basic salary for Grade 11 is Tk 25,000, while that for Grade 12 is Tk 24,300. This means the starting salary for Grade 11 is Tk 700 higher than that for Grade 12.

However, calculations provided by employees show the opposite outcome after fixing pay under the new structure.

For an employee in Grade 11, the starting basic salary in 2015 was Tk 12,500. By 30 June this year, the employee’s basic salary had risen to Tk 23,660. This means the basic salary had increased by Tk 11,160 under the previous structure. Adding this increase to the new structure’s starting salary of Tk 25,000 gives Tk 36,160. As there is no corresponding increment in the new structure, the employee’s salary is being fixed at the next step, Tk 37,000.

By contrast, the starting basic salary for a Grade 12 employee in 2015 was Tk 11,300. On 30 June this year, the employee’s basic salary stood at Tk 23,580. This represents an increase of Tk 12,280 under the previous structure. Adding that increase to the new structure’s starting salary of Tk 24,300 gives Tk 36,580. Under the next salary step, the employee’s pay is being fixed at Tk 37,700.

As a result, the new basic salary of a Grade 11 employee is being fixed at Tk 37,000, while that of a Grade 12 employee is being fixed at Tk 37,700. In other words, despite having a higher starting salary, the Grade 11 employee will receive Tk 700 less under the new structure.

The gap will persist

According to calculations provided by employees, the salary gap between the two grades will remain even as the benefits under the new structure are introduced in phases.

When 50 per cent of the benefits take effect in the first phase from 1 July 2026, the basic salary for Grade 11 will stand at Tk 31,230, while that for Grade 12 will be Tk 31,590. This means a Grade 12 employee will receive Tk 360 more.

Similarly, when 75 per cent of the benefits take effect from 1 January 2027, the basic salary for Grade 11 will be Tk 35,015, compared with Tk 35,595 for Grade 12. The gap will then be Tk 580. When the full 100 per cent benefits take effect from 1 July 2027, the salary for Grade 11 will be Tk 40,800 and that for Grade 12 will be Tk 41,600, widening the gap to Tk 800.

Under paragraphs 5 and 9 of the new notification, pay is to be fixed as of 1 July 2026, with benefits of 50, 75 and 100 per cent introduced in phases based on the difference between the newly fixed salary and the current salary. Employees allege that this method itself disrupts the normal hierarchy of salaries across grades during pay fixation.

Total earnings may fall even after promotion

Inconsistencies have also emerged over house rent allowances under the new structure.

According to one calculation provided by employees, when a Grade 10 official completes 10 years of service and is promoted to Grade 9 or receives the first higher grade, their basic salary will rise from Tk 49,700 to Tk 51,000—an increase of Tk 1,300.

However, the official’s total earnings could fall because the house rent allowance rate decreases when the grade changes. At Grade 10, a basic salary of Tk 49,700 attracts a house rent allowance of 50 per cent, or Tk 24,850.

At Grade 9, a basic salary of Tk 51,000 attracts a house rent allowance of 45 per cent, or Tk 22,950. This represents a reduction of Tk 1,900 in the allowance.

Consequently, although the basic salary rises by Tk 1,300, the house rent allowance falls by Tk 1,900. Taken together, the monthly basic salary and house rent allowance will decrease by Tk 600. Employees fear that similar problems could arise in other grades as well.

Questions over seniority in higher grades

Employees have also raised objections to the rules governing when they become eligible for a higher grade.

They allege that employees who completed eight years of service by 30 June 2026 and those who completed 10 years by the same date may both become eligible for their first higher grade from 1 July.

This raises the possibility that senior and junior officials in the same grade will end up receiving equal salaries. Because of the steps used in pay fixation, junior officials could, in some cases, receive higher salaries than their senior colleagues.

According to calculations provided by employees, differences in the timing of eligibility for higher grades could also create pay disparities later. A junior official may take 14 years to receive two higher grades, while a senior official may need 16 years. In their view, it will be difficult to eliminate such inconsistencies unless the eligibility criteria and timing rules for higher grades are clearly defined.

Complications with iBAS++; pay fixation remains incomplete

Employees allege that complications with the iBAS++ system have prevented many government officials and employees from fixing their salaries. They also claim that experienced personnel have not been adequately involved in the process. A shortage of experienced staff, combined with the inexperience of newly appointed officials, has made the task even more complicated.

iBAS++ is the government’s Integrated Budget and Accounting System. It is used for tasks ranging from budget management to fixing the salaries of government officials and employees, preparing bills, disbursing payments, and maintaining records of government income and expenditure.

As the increased salaries are scheduled to be paid from 1 November, employees believe these problems need to be resolved quickly. They are calling on the Finance Division to review the pay-fixation rules, grade hierarchy, eligibility for higher grades and calculations of house rent allowances, and to make the necessary amendments.

Officials and employees say that clarifying the rules and resolving the inconsistencies would reduce disputes over seniority and the financial benefits associated with promotion. It would also make it easier to complete pay fixation for everyone on schedule and pay the outstanding arrears.