Lower-grade govt employees to get larger rise in first phase of new pay scale
Sources said the initial plan was to provide 50% of the increase in basic pay over two consecutive fiscal years, with adjustments to allowances in the final year
Highlights:
- New pay scale takes effect from 1 July
- Cabinet favours inflation relief for low-income staff
- Higher-grade officials may receive smaller initial salary hike
- Govt to implement new pay scale over three fiscal years
- Full implementation may cost govt an extra Tk1.06 lakh crore
The government is planning to grant a higher salary increase to lower-grade employees than to higher-grade officials in the first phase of the new pay scale from July, aiming to help low-income workers cope with inflation while containing public expenditure.
According to sources, employees from Grade-10 to Grade-20 are likely to receive a larger proportion of their salary increase in the coming fiscal year, while those from Grade-1 to Grade-9 may receive a comparatively smaller increase.
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A state minister who attended a cabinet meeting on Thursday told TBS that the issue was discussed during miscellaneous discussions, although implementation of the new pay scale was not formally included on the meeting agenda.
Speaking on condition of anonymity, the state minister said the government intends to implement the new pay scale over three fiscal years, in line with the announcement made by Finance Minister Amir Khosru Mahmud Chowdhury during his budget speech for FY2026-27.
According to the state minister, cabinet members favoured providing a relatively larger increase to lower-paid employees in the first year, considering the pressure of high inflation on household expenses.
He said the salary increase would raise government operating expenditure, while there was no certainty of a corresponding increase in revenue earnings.
Given the overall economic situation, the cabinet advised a higher increase for lower-paid employees and a comparatively lower increase for higher-paid officials.
The government announced that the new pay scale for public servants will take effect from 1 July.
Sources said the initial plan was to provide 50% of the increase in basic pay over two consecutive fiscal years, with adjustments to allowances in the final year. However, that approach may now be revised.
According to officials familiar with the discussions, employees from Grade-1 to Grade-9 may receive 40% of their proposed basic pay increase in the coming fiscal year, while employees from Grade-10 to Grade-20 may receive 60% of their proposed increase. No final decision has yet been announced.
The Public Administration Reform Commission, formed during the interim government, recommended a salary increase for government employees. Following this, the National Pay Commission-2025 was formed and submitted its report to the chief adviser on 21 January.
The commission recommended salary increases ranging from 100% to 142%. Officials estimate that implementing the recommendation in full would require an additional Tk1.06 lakh crore in government expenditure.
Separate reports recommending salary increases for members of the judiciary and the armed forces were also submitted by the Bangladesh Judicial Service Pay Commission-2025 and the Armed Forces Pay Commission-2025.
After the elected government took charge, it formed a committee of 10 secretaries headed by Cabinet Secretary Nasimul Gani on 21 April to review the recommendations. The committee has so far held three meetings.
Sources said the committee has reviewed the National Pay Commission report in detail but has yet to finalise its recommendations.
A draft of the proposed pay structure was presented at the cabinet meeting to brief the government before a final decision is taken.
According to sources, the committee has proposed increasing basic salaries by up to 120%, although the minimum proposed increase remains unclear.
The recommendations of the judicial and armed forces pay commissions have also been reviewed but not finalised.
The reports are expected to be finalised and placed before the cabinet next month.
Public administration currently has 20 grades of employees. Officers recruited through the BCS examination are appointed to Grade-9 and above, while employees in other categories serve in Grade-10 to Grade-20 positions.
According to information provided in parliament by Public Administration State Minister Abdul Bari on 2 April, a total of 1,450,891 people are employed in government service.
Of them, 190,773 serve in Grade-1 to Grade-9 positions, while 1,260,118 work in Grade-10 to Grade-20 posts. The minister said 233,726 employees are in the second class, 613,835 in the third class, 404,557 in the fourth class and 7,980 in other categories.
