Bangladesh Plans Phased Implementation of Ninth Pay Scale

The government is considering implementing the proposed Ninth National Pay Scale in phases instead of introducing it all at once, due to the country’s current economic conditions.

According to Finance Ministry sources, the new pay scale may be implemented in three stages. A draft allocation of around Tk 35,000 crore has already been proposed in the next national budget for partial implementation.

However, officials say full implementation will depend on the country’s overall financial capacity and is unlikely before the 2028–29 fiscal year.

The proposal also includes increases in several employee allowances.

Under the proposal, the Baishakhi allowance may rise from the current 20 percent of basic salary to 50 percent.

The tiffin allowance for employees in grades 11 to 20 is proposed to increase from Tk 200 to Tk 1,000.

The education allowance for children may also increase from Tk 1,500 to Tk 2,000 per month.

Government officials are reviewing two possible implementation methods. One option is introducing the pay scale in three phases. Another option is gradually increasing salaries over the next two fiscal years.

Under the first proposal, the basic salary of government officials and employees could increase by up to 50 percent in the next fiscal year. The remaining adjustment would be made the following year. House rent and other allowances may then be implemented in phases during the third year.

A committee led by the Cabinet Secretary has been formed to assess inflation, government revenue and the country’s overall financial capacity. After final recommendations are prepared, the proposal will be submitted for approval following discussions with the Prime Minister.

Government estimates show that around Tk 80,000 crore will be needed to fully implement the Ninth Pay Scale for government employees. Additional funds will also be required for pensioners and teachers and employees under MPO facilities.

The proposed national budget for the next fiscal year may reach Tk 9.3 lakh crore, around 18 percent higher than the current budget. Revenue income targets could be set at Tk 6.3 lakh crore.

At present, the government spends about Tk 84,114 crore annually on salaries and allowances for public employees and another Tk 35,657 crore on pensions. Combined expenditure for nearly 1.4 million employees and 900,000 pensioners stands at around Tk 1.31 lakh crore.

The proposed Ninth Pay Scale keeps the existing 20-grade structure. Recommendations include raising the minimum salary from Tk 8,250 to Tk 20,000 and the maximum salary from Tk 78,000 to Tk 1,60,000.

Previously, the Eighth National Pay Scale introduced in 2015 was also implemented in phases. Basic salaries were introduced first, while allowances were adjusted the following year. Officials say a similar step-by-step approach may be followed again.