Govt to roll out new pay scale for public servants in phases from July
The implementation, however, will be carried out in phases, although the exact proportion of the revised salary to be disbursed from July has not yet been finalised
The government has decided to begin phased implementation of a new pay structure for public sector employees from this July, according to officials familiar with the matter.
The decision was taken by Prime Minister Tarique Rahman during a high-level meeting with senior officials of the Finance Ministry on the upcoming national budget held last Wednesday, sources told TBS.
A senior finance ministry official, speaking on condition of anonymity, said today that the prime minister has approved the rollout of the new pay scale from the first day of the 2026-27 fiscal year. "There is no uncertainty. We will start receiving salaries under the new structure from July."
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He added that the implementation, however, will be carried out in phases, although the exact proportion of the revised salary to be disbursed from July has not yet been finalised.
Officials said the full pay structure may be implemented over three fiscal years. Under the proposed plan, 50% of the increased basic salary could be introduced in the 2026-27 fiscal year, starting 1 July, with the remaining 50% in 2027-28. Allowances may be incorporated in 2028-29.
Also read: Govt employees to get paid under new pay scale from early next year
The phased approach is expected to ease pressure from inflation while also making fiscal management more manageable for the government.
Finance ministry officials said over Tk30,000 crore is being allocated in the next fiscal budget to cover the initial 50% increase in basic pay. In the current fiscal year, around Tk85,000 crore has been allocated for salaries and allowances of nearly 1.5 million government employees.
Accordingly, the draft budget speech prepared by Finance Minister Amir Khosru Mahmud Chowdhury reportedly includes provisions for a gradual implementation of the new pay structure. Officials said that when the finance ministry presented the implementation plan and funding strategy before the prime minister, she approved it and directed that it be made effective from July.
The interim government led by Prof Muhammad Yunus formed a National Pay Commission last year, which submitted its report to the government on 22 January. The commission recommended raising salaries and benefits of government employees by 100% to 147%, depending on grade.
Under the proposed structure, the minimum basic pay for 20th-grade employees would increase from Tk8,250 to Tk20,000, while the highest grade would rise from Tk78,000 to Tk160,000. The proposal also includes higher allowances and improved pension benefits.
The commission estimated that implementing the new pay structure for active employees would require about Tk106,000 crore, with an additional Tk25,000 crore needed for pensioners.
Given the government's revenue situation and broader macroeconomic constraints, the commission recommended a phased rollout of the revised pay structure.
