New govt pay scale to take effect from 1 July

Implementation of a new pay scale for government officials and employees is set to begin from 1 July. The government is taking into consideration the recommendations made by the committee led by Cabinet Secretary Nasimul Ghani regarding the rollout of the revised pay scale.

The committee recommended implementing the new pay scale in three phases over three fiscal years. Under the proposal, 50 per cent of the revised basic salary would be provided in each of the first two fiscal years, while allowances would be introduced in the third year. Prime Minister Tarique Rahman has given an approval in principle to the proposal.

Two meetings on the proposed budget for the 2026–27 fiscal year were held at the Secretariat last Wednesday and Thursday with the prime minister in attendance. Among those present were Finance and Planning Minister Amir Khasru Mahmud Chowdhury, Bangladesh Bank Governor Md Mostaqur Rahman, Finance Secretary Md Khairuzzaman Majumder and National Board of Revenue Chairman Md Abdur Rahman Khan, according to sources familiar with the meetings.

The issue of implementing the new pay scale was among the topics discussed during the budget meetings. No official briefing was held afterwards.

Contacted by phone, the prime minister’s press secretary Abu Abdullah M Saleh (known as Saleh Shibli), told Prothom Alo on Sunday that he had not attended the meetings and therefore could not comment.

Speaking to Prothom Alo at his office on Monday, Finance and Planning Minister Amir Khasru Mahmud Chowdhury said, “The new pay structure will be implemented from the next fiscal year, meaning from 1 July. Work is under way to determine the best possible way to implement it.”

Asked whether the government planned to follow the recommendation of implementing the structure in three phases over three fiscal years, the finance minister said, “That was the recommendation. But we have budgetary limitations. We are in a difficult situation. The economy is under strain, and revenue collection relative to gross domestic product (GDP) is poor. As a result, many things are being dropped or cut back. Even within these constraints, we are trying to address the new pay scale.”

During the tenure of the previous interim government led by Muhammad Yunus, a pay commission was formed to prepare a new salary structure for government employees. The 23-member commission, headed by former Finance Secretary Zakir Ahmed Khan, submitted its report recommending increases in salaries and allowances to the then chief adviser on 21 January.

Two months after the Bangladesh Nationalist Party (BNP) government assumed office in February, a 10-member committee headed by the cabinet secretary was formed on 23 April to oversee implementation of the new structure. The committee recommended a phased implementation in three stages.

Following positive indications from the prime minister, the Nasimul Ghani-led committee has called another meeting to be held on Thursday, 21 May, to finalise the implementation process. Sources said the meeting is expected to produce a final decision.

After the submission of the pay commission report led by Zakir Ahmed Khan, the then chief adviser’s press wing stated that the government currently spends Tk 131 billion annually on 1.4 million government employees and 900,000 pensioners. Implementing the commission’s proposals, including revised salaries and allowances, would require an additional Tk 106 billion.

Sources said allocating 50 per cent of the revised basic salary in the next fiscal year’s budget could cost between Tk 30 billion and Tk 35 billion.

The proposed pay structure recommends salary increases ranging from 100 to 140 per cent, while retaining the existing 20 grades. The commission proposed raising the minimum basic salary from Tk 8,250 to Tk 20,000. The highest salary would rise from Tk 78,000 to Tk 160,000.

A separate grade outside the 20-grade structure is expected to be created by the Finance Division for cabinet secretaries, principal secretaries to the prime minister and senior secretaries, to be issued later through official notification.

Nearly a decade after the 8th pay commission, the government formed the 23-member 9th national pay commission on 27 July 2025. The commission was initially asked to submit its report within six months, although the deadline was later extended once. The final deadline had been set for 14 February, but the commission submitted its report three weeks ahead of schedule.

Before preparing the report, the commission considered factors such as data from the Bangladesh Bureau of Statistics, accumulated inflation, salary structures in neighbouring countries, alignment with the private sector and overall living standards.

According to Finance Ministry sources, increases in basic salary will automatically raise house rent, medical and other allowances. Government employees currently receive a Boishakhi allowance equivalent to 20 per cent of their basic pay. The commission recommended increasing that rate to 50 per cent.

At present, transport allowances are available only to employees in grades 11 to 20. The commission proposed extending the benefit to employees from grades 10 to 20.

Alongside serving government employees, pensioners are also expected to receive substantial increases. The commission recommended more than doubling pensions for those receiving less than Tk 20,000 a month. Pensioners receiving between Tk 20,000 and Tk 40,000 monthly could see increases of up to 75 per cent, while those receiving more than Tk 40,000 may receive increases of up to 55 per cent.

Discussions are continuing on how much can realistically be allocated for pension increases in the coming fiscal year.

The commission also proposed medical allowances of Tk 10,000 for pensioners aged over 75, Tk 8,000 for those aged between 55 and 74, and Tk 5,000 for pensioners below the age of 55.

In addition, relatively smaller increases in house rent allowances have been recommended for higher-paid employees in grades 1 to 10, while comparatively larger increases are proposed for employees in grades 11 to 20.

Executive Director of the South Asian Network on Economic Modeling (SANEM), Selim Raihan, told Prothom Alo on Monday that the government’s phased approach to implementing salary and allowance increases was reasonable.

He said the government had taken initiatives to expand the social safety net sector, which would require additional funding, while revenue collection remained weak. However, he added that administrative reform was also necessary alongside salary increases.

According to Selim Raihan, improving bureaucratic efficiency, as well as ensuring greater transparency and accountability among government employees, is equally important.

He suggested that the government could issue directives to ensure those reforms accompany the salary hikes.