Pay scale recommendation to be finalized tomorrow

The government is set to finalize recommendations for the ninth national pay scale on Thursday, with plans to begin implementation from July 1 of the 2026–27 fiscal year.

Under the proposed structure, government employees will receive salary increases in phases over three fiscal years instead of all at once. Officials involved in the process say the strategy is aimed at balancing inflation pressures with the government’s financial capacity.

According to sources, the reconstituted committee led by Cabinet Secretary Nasimul Gani is expected to finalize its recommendations under the direction of Prime Minister Tarique Rahman. The proposal will then be sent to the Prime Minister’s Office for approval before a formal notification is issued by the Finance Ministry.

More than Tk 30,000 crore is expected to be allocated in the upcoming national budget to support the implementation process.

50 Percent Basic Salary Adjustment in Two Years Under the proposed plan, government officials and employees will receive a 50 percent adjustment to their existing basic salary in phases over the first two fiscal years.

The first phase will begin on July 1, 2026, when employees are expected to receive an initial increase in basic salary. A second adjustment is planned for the following fiscal year to complete the revised salary structure.

However, allowances and additional financial benefits—including house rent, medical allowance, travel allowance, special incentives and risk benefits—will not be introduced immediately. These are expected to be fully implemented in the third phase during the 2028–29 fiscal year.

Finance Ministry officials say implementing all benefits at once would create major pressure on the national budget. The phased approach has been designed considering revenue collection, inflation and overall economic conditions.

Inflation and Cost of Living Behind the Decision Committee members say the proposed pay scale takes into account rising inflation and increased living costs faced by government employees in recent years.

Former Finance Secretary Mahbub Ahmed said a phased salary increase is a practical decision because salaries have not kept pace with inflation. He added that the government also faces economic challenges both at home and globally.

Policy Exchange Chairman M Masrur Riaz said implementing the ninth pay scale is reasonable considering current inflation, but gradual implementation reflects fiscal realities.

All Government Employees Likely to Be Included

The proposed pay scale is expected to cover all government employees, including Administration cadre officials,Teachers, Police personnel, Health workers, Field administration staff, Judicial employees

Sources also said separate guidance may be issued for autonomous and semi-autonomous institutions. Officials involved in the discussions said lower and middle-income employees may receive relatively higher benefits under the new structure because inflation has affected them the most. The committee has also discussed reducing disparities between salary grades.

The Pay Commission led by former Secretary Zakir Ahmed Khan earlier recommended significant increases in pensions.

According to the recommendations Pensioners receiving less than Tk 20,000 monthly could receive a 100 percent increase. Those receiving Tk 20,000 to Tk 40,000 could receive a 75 percent increase Pensioners receiving more than Tk 40,000 could receive a 55 percent increase

Officials said discussions are ongoing about how much of the pension adjustment can be implemented in the next fiscal year.