Bangladesh government employees are set to receive increased basic salaries under the new pay structure from this month, while housing, medical and other allowances will remain unchanged for now.
Until further instructions are issued, these allowances will continue to be calculated and paid based on the basic salaries in effect on June 30, 2026, according to a notification issued by the Regulation Wing of the Finance Division under the Ministry of Finance on Monday, October 19.
The directive applies to employees of government ministries, divisions, offices and agencies, as well as state-owned and autonomous institutions.
Finance Division sources said the budget includes the necessary allocation to pay the increased basic salaries under the new structure. Once the process of fixing employees’ basic salaries is completed, the revised amounts will be reflected in their salaries for the current month.
Although basic pay is increasing under the new structure, housing, medical and other allowances will not rise immediately. The notification states that these allowances will continue to be determined and paid based on the basic salaries effective on June 30, 2026, until further orders are issued.
This means employees will receive increased basic pay under the new structure, but their allowances will initially be calculated using the basic salary rates under the previous structure. They will have to wait until the designated implementation period to receive higher allowances under the new pay scale.
Under the approved national pay structure, the minimum basic salary for government employees has been set at Tk 20,000, while the maximum is Tk 156,000. Although the structure is considered effective from July 1, its implementation is being phased in rather than introducing the full increase in basic pay at once.
Under the first phase, covering July 1 to December 31, 2026, officers in Grade 9 and above will receive 40% of the increased basic pay, while employees in Grades 10 to 20 will receive 50%.
In the second phase, from January 1 to June 30, 2027, officers in Grade 9 and above will receive 70% of the increased basic pay, while employees in Grades 10 to 20 will receive 75%.
The full increase in basic pay is scheduled to take effect from July 1, 2027. Housing and other allowances under the new pay structure are scheduled to be fully implemented from January 1, 2028.
The process of fixing government employees’ basic salaries under the new structure is also underway. Since October 5, employees have been entering the required information through the “Pay Fixation” option in the government’s iBAS++ system.
According to Finance Division sources, the increased basic pay will be reflected in salaries for the current month once the pay-fixation process is completed. Employees will, however, have to follow the scheduled implementation phases to receive the full benefits of the new pay structure.
