Finance Ministry seeks guidance on proposed new pay scale

The Finance Ministry is seeking high-level guidance from the government regarding the implementation of the recommendations made by the proposed new national pay scale for government officials and employees. 

Finance and Planning Minister Amir Khasru Mahmud Chowdhury is scheduled to hold a meeting with Prime Minister Tarique Rahman at the Prime Minister’s Office on Sunday.

Finance Secretary Dr Md Khairuzzaman Majumder and other senior officials from the Prime Minister’s Office and the government are expected to attend the meeting.

The interim government had formed a 23-member National Pay Commission, headed by former Finance Secretary Zakir Ahmed Khan, to recommend a new salary structure. 

On January 22, the commission proposed increasing salaries and allowances by between 100 and 140 percent. 

It suggested raising the lowest basic salary from Tk8,250 to Tk20,000 and the highest from Tk78,000 to Tk160,000.

The commission chairman stated that implementing these recommendations would require an additional Tk160,000 crore. 

Currently, the government spends around Tk1.31 trillion annually on salaries and pensions for approximately 1.4 million employees and 9 million pensioners.

Sources in the Finance Division indicated that several steps remain before the recommendations can be implemented. 

A nine-member review committee, headed by the Cabinet Secretary, was formed on February 8 to examine the reports of the National Pay Commission-2025, the Bangladesh Judicial Service Pay Commission-2025, and the Armed Forces Pay Committee-2025. 

However, due to the political changes following the national elections on February 12, the review committee has not yet begun its work without clear direction from the new government.

It was initially planned to implement the new pay structure partially from the 2025-26 fiscal year, with an additional Tk22,000 crore allocated for pay and allowances in the revised budget. 

However, due to extra expenditures required to address global economic instability and the energy crisis, that allocation has been redirected.

Many observers believe the new salary structure is more likely to take effect from the 2026-27 fiscal year and may be introduced in phases, starting with basic salary and followed later by allowances and other benefits — a practice followed by previous pay commissions.

The current global economic situation, particularly the instability caused by the conflict in the Middle East involving the United States, Israel, and Iran, has further complicated the decision. 

The government is currently pursuing a cost-saving approach, and today’s meeting is expected to address how to proceed with the new pay scale under these challenging circumstances.