New pay scale gazetted; higher salaries effective from July

The government has issued the long-awaited gazette for the ninth national pay scale, raising basic salaries by up to 142% and introducing the new structure in three phases.

The Finance Ministry issued the "Service (Pay and Allowances) Order, 2026" today (19 September), with the gazette dated 17 September and effective retrospectively from 1 July 2026.

However, the special allowance currently enjoyed by the government employees will be scrapped. The allowance paid from 1 July until the gazette takes effect will be adjusted against the arrears payable to employees.

Under the first phase, officials in Grade 9 and above will receive 40% of the additional basic pay, while employees in Grades 10-20 will receive 50%. The rates will apply until December.

From 1 January to 30 June 2027, employees in Grade 9 and above will receive 70% of the additional basic pay, while those in Grades 10-20 will receive 75%.

The full increase will come into effect from 1 July 2027. Employees will receive arrears from 1 July 2026 until the gazette date after adjustment of the special allowance already paid.

Other allowances under the new pay scale will come into effect from 1 January 2028. Pensioners will also receive benefits under the new structure.

Basic pay rises

Basic salaries for Grades 1-11 have increased by up to 100%, while salaries for Grades 12-20 have increased by 115% to 142%.

The minimum basic salary for Grade 20 has been set at Tk20,000, while Grade 1 salary is Tk156,000.

The cabinet secretary, principal secretary to the prime minister and officials of equivalent rank will receive Tk172,000, while senior secretaries and equivalent officials will receive Tk164,000.

Under the 2015 pay scale, their salaries were Tk86,000 and Tk82,000 respectively.

The government will incur an additional Tk105,380 crore over three years to implement the new structure. Of this, Tk37,372 crore will be required in the current fiscal year, Tk44,838 crore in 2027 and Tk23,170 crore in 2028.

The annual increment date for all employees will be the first day of the fiscal year. Employees will receive an increment on 1 July 2026, although the government plans to shift the beginning of the fiscal year to 1 April from 2028.

Employees will continue to receive allowances, including festival and Bengla New Year allowances, at existing rates until 31 December 2027. New rates will apply from 1 January 2028.

Higher grade after eight years

The waiting period for a higher grade without promotion has been reduced from 10 years under the 2015 pay scale to eight years. However, receiving a higher grade will not be treated as a promotion.

Employees in Grades 1-7 will require 20, 17, 14, 12, 10, five and four years of service respectively to receive the full salary of their respective grades.

House rent allowance revised

In Dhaka North and South city corporation areas, employees in Grades 20-16 will receive house rent equivalent to 60% of basic pay, while the rates will be 50% for Grades 15-10, 45% for Grades 9-5 and 40% for Grades 4-1 and above.

In other major city corporations, including Chattogram, Khulna, Rajshahi, Sylhet, Barishal, Narayanganj, Cumilla, Rangpur, Gazipur, Mymensingh and Bogura, as well as Savar and Cox's Bazar municipal areas, the rates will be 50%, 40%, 35% and 30% respectively.

In other areas, the rates will be 45% for Grades 20-16, 35% for Grades 15-10, 30% for Grades 9-5 and 25% for Grades 4-1 and above.

Although the percentage rates are lower than those under the 2015 scale, the actual house rent will increase because of higher basic salaries.

Medical allowance raised

Employees will receive Tk3,000 a month up to age 50 and Tk4,000 from 50 years and one day until entering post-retirement leave.

Retired employees and lifetime pensioners will receive Tk3,000 up to age 50, Tk4,000 from 50 years and one day to 60, Tk5,000 from 60 years and one day to 70, and Tk6,000 after 70.

The Bengla New Year allowance has, however, been reduced from 20% to 15% of basic salary.

Pension benefits increased

Pensioners will receive increases ranging from 55% to 100%, depending on their existing pension.

Those receiving up to Tk9,000 will get Tk10,000-Tk18,000. Pensioners receiving Tk9,001-Tk20,000 will get Tk18,001-Tk35,000, while those receiving Tk20,001-Tk30,000 will get Tk35,001-Tk49,000.

Those receiving Tk30,001-Tk40,000 will get Tk49,001-Tk62,000, while those receiving Tk40,001 or more will get a minimum of Tk62,001 and up to Tk70,200.

Those already receiving more than Tk70,200 will not receive additional benefits until 1 July 2027.

The special allowance for pensioners will also be scrapped. Retired employees and lifetime family pensioners will receive two festival allowances equivalent to their net monthly pension and arrears from 1 July until the gazette date.

Who will get new pay

The pay scale will apply to government employees, members of the Bangladesh Judicial Service, civilian defence employees except those paid from defence estimates, and employees of Border Guard Bangladesh and police.

Workers, apprentices, trainees and eligible outsourced, daily-wage, contractual and part-time workers of state-owned productive industrial enterprises will also receive pay and allowances under the new scale.

For employees on deputation, pay will be based on what they would have received at their parent organisation.

Employees who were on leave on 1 July will not receive the new pay scale benefits for the leave period. Similarly, suspended employees will not have their salaries fixed under the new scale until they are reinstated and resume work.

Education, professional allowances

Employees will receive Tk500 per month for each of up to two children, or Tk1,000 in total, as education assistance. If both parents are government employees, only one will get the benefit.

Other allowances include tiffin, charge, travel, washing, hospitality, domestic aid, hill and training-related allowances. Risk allowances for employees in sectors including Fire Service, Ansar, VDP, National Security Intelligence and nursing will continue.

Employees deputed to the Coast Guard and Rapid Action Battalion will not receive the risk, special or defence service allowance of their parent forces.

Employees appointed to posts requiring an MBBS, architecture or engineering degree, or equivalent qualification, as the minimum educational requirement will receive one advance increment.

Those with specified engineering, architecture, physical planning or law qualifications will receive two advance increments where those qualifications are mandatory for the post.

Ninth pay scale after nearly decade

The cabinet approved the new pay structure on 31 August.

Earlier, a 10-member committee headed by Cabinet Secretary Nasimul Gani was formed on 21 April to recommend measures for implementing the new structure.

The 23-member Ninth National Pay Commission was formed on 27 July 2025, nearly a decade after the Eighth Pay Commission. It submitted its report on 21 January this year.

The new structure is the ninth national pay scale introduced in Bangladesh since 1973 and comes nearly 12 years after the previous pay scale was announced in 2015.