Budget FY27: New pay structure for public servants from 1 July
The proposed budget for FY2026-27 allocates Tk89,380 crore for salaries and allowances
The government has announced plans to introduce a new pay structure for public servants from 1 July, citing a sharp rise in living costs over the past decade.
Finance Minister Amir Khosru Mahmud Chowdhury, in his budget speech today (11 June), said, "Government employees have been receiving salaries and allowances under the same pay structure for nearly 11 years. Meanwhile, the cost of living has risen significantly due to inflation."
"We are introducing a new pay structure for government employees, including salaries and allowances, effective from 1 July 2026." he added.
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Despite the announcement, no separate allocation has been earmarked in the budget for the revised pay package.
The FY2026-27 budget proposes Tk89,380 crore for salaries and allowances, up from the revised allocation of Tk84,739 crore in the current fiscal year. Of the proposed amount, Tk13,874 crore has been allocated for cadre officers' salaries, Tk30,671 crore for employees' salaries, and Tk44,835 crore for allowances.
Finance ministry officials said the government is likely to implement the new structure partially from the start of the fiscal year, potentially granting only part of the proposed increase in basic pay.
The recommendations of the pay commission formed by the interim government are unlikely to be adopted in full. A committee of secretaries reviewing the commission's report has yet to submit its recommendations and may propose a lower salary increase.
Officials said funding would not pose a major challenge, as the required expenditure could be covered through block allocations and contingency funds already included in the budget. According to finance ministry officials, around Tk37,000 crore remains available under various block allocations to support implementation.
