National Pay Scale 2026 approved at cabinet

The government has approved the National Pay Scale 2026, introducing a phased increase to basic salaries and extending mobile phone allowances to all government employees. 

Chaired by Prime Minister Tarique Rahman, the cabinet approved the new salary structure on Monday at the Secretariat, marking the first pay revision for government workers in almost 11 years. 

While the new scale takes effect from July 1, 2026, the basic salary will be rolled out in three phases over the following year to mitigate inflationary pressures and manage the state’s financial burden. 

New allowances, however, will be introduced simultaneously from January 2028. 

The initiative will benefit approximately 3.3 million people, comprising 2.4 million current military and civilian personnel alongside 9.25 million retirees, at an additional annual cost to the exchequer of roughly Tk1,05,800 crore.

The 20-grade structure has been retained, with the starting basic salary for the lowest grade set at Tk20,000 —a 142 per cent increase on the previous scale. 

The highest grade will see a 100 per cent rise to a fixed Tk1,56,000. In implementing the basic salary hikes between July 2026 and July 2027, priority will be given to lower-income employees in grades 10 to 20.

One of the most notable shifts in the policy is the universalisation of the mobile allowance. Previously reserved for senior officials up to grade 5, the benefit will now be extended to all grades. 

The expansion reflects the growing reliance on personal devices for email, online meetings, and app-based file management across government departments.

Significant changes have also been made to pension provisions. Although the election pledge of ‘One Rank One Pension’ (OROP) will not be fully realised immediately due to data constraints and substantial financial requirements, it remains slated for phased implementation by 2030. 

In the interim, a new formula has been approved to disproportionately benefit low-income retirees. 

Under this structure, net pensions of Tk9,000 or less will double, representing a 100 per cent increase. Those receiving between Tk9,001 and Tk20,000 will see a 75 per cent rise, while brackets of Tk20,001 to Tk30,000 and Tk30,001 to Tk40,000 taka will receive increases of 65 per cent and 60 per cent respectively. 

Pensions exceeding Tk40,001 will be raised by 55 per cent. Pensions will also be adjusted in phases alongside the salary increases.

Furthermore, the new pay scale introduces a first-of-its-kind allowance for government employees caring for children with special needs. Parents will receive Tk3,000 per month for each eligible child to help offset the additional care and family expenses. 

The financial resources required to sustain these sweeping measures will be allocated across the relevant upcoming fiscal budgets.