New pay scale to be rolled out in phases from July

The government has decided to implement the new pay scale or salary structure for government officials and employees in phases starting from the next fiscal year 2026-27 (July-June). 

As part of this plan, the allocation for salaries, allowances, and pensions is being increased by about Tk 35,000 crore in the new budget. This additional funding is expected to cover only about half of the basic salary under the new structure in the first phase.

Sources indicate that the remaining half of the basic salary along with various allowances may be implemented over the next two fiscal years. There is also an alternative proposal to implement the entire salary structure within two years. These plans have been formulated following discussions with Finance Minister Amir Khasru Mahmud Chowdhury and Rashed Ahmed Titumir, Adviser to the Prime Minister on Finance. 

Implementation will begin from the next fiscal year subject to approval by the Prime Minister.

An official from the Finance Division said on condition of anonymity that the current government had reconstituted the committee for the National Pay Commission, Judicial Service Pay Commission, and Armed Forces Pay Commission on April 21. 

The committee recently submitted its recommendations. It proposed implementing the ninth pay scale in multiple phases, taking into account financial constraints. The Pay Commission itself had also suggested a phased approach.

The previous interim government had formed a 23-member National Pay Commission 2025, headed by former Finance Secretary Zakir Ahmed Khan. On January 22, the commission recommended increasing pay and allowances by 100 to 140 percent. It proposed raising the lowest basic salary from Tk 8,250 to Tk 20,000 and the highest from Tk 78,000 to Tk 1,60,000. 

Implementing the full recommendation would require an additional approximately Tk 1,06,000 crore annually. Currently, the government spends about Tk 1,31,000 crore per year on salaries and pensions for roughly 1.4 million employees and 9 million pensioners.

Dr AK Enamul Haque, Director General of the Bangladesh Institute of Development Studies and a member of the National Pay Commission, told Daily Samakal that implementing the new pay structure all at once could increase inflationary pressure. A phased implementation over three years would therefore be more reasonable. 

He noted that if GDP growth reaches 6 to 7 percent, there should be no major difficulty in implementing the new scale. He also pointed out opportunities to boost revenue through better tax collection and prevention of evasion.

Dr Enamul Haque emphasised that the goal of the new pay scale is not merely to increase salaries but also to improve the quality of government services and ensure good governance. If employees cannot maintain a minimum standard of living, it becomes difficult to expect efficiency and transparency. The new structure also aims to retain talented officials in high positions and address issues such as teachers engaging in side professions, which affects their professionalism.

Key proposals in the Pay Commission report

The commission’s report contains various recommendations, including the introduction of health insurance for government employees and reform of the pension system. It also proposes restructuring the Government Employees Welfare Board, forming a service commission, rationalising pay grades and scales, setting up a committee to review allowances, and focusing on human resource development in health and education sectors. 

Employees with disabled children have been recommended a monthly allowance of Tk 2,000.

The commission suggested increasing the rate of various allowances. For instance, the monthly tiffin allowance for employees in grades 11 to 20 could rise from Tk 200 to Tk 1,000. It also recommended raising the Boishakhi allowance from 20 percent to 50 percent. Pensioners receiving less than Tk 20,000 per month could see a 100 percent increase, those receiving Tk 20,000 to Tk 40,000 a 75 percent rise, and those above Tk 40,000 a 55 percent increase.