Gazette delay clouds 9th Pay Scale rollout

More than a month into the 2026-27 fiscal year, uncertainty continues to cloud the implementation of the Ninth National Pay Scale as the government has yet to issue the long-awaited gazette notification despite allocating funds for the revised salary structure in the national budget.

The delay has heightened uncertainty among hundreds of thousands of government officials and employees, who had expected the new pay scale to take effect from the beginning of the current fiscal year following the budget announcement.

Officials familiar with the process said the government remains committed to implementing the new pay scale. However, policymakers have yet to reach a consensus on how it should be introduced and how many of the National Pay Commission's recommendations should be incorporated into the final framework.

According to officials, the main sticking point is the implementation roadmap. While the government has earmarked funds in the budget, discussions continue over whether the revised salaries and allowances should be introduced in two phases or three to ensure fiscal sustainability and maintain equity across different grades of public servants.

The National Pay Commission, headed by former Finance Secretary Zakir Ahmed Khan, had proposed a three-phase implementation plan. Under its recommendation, government employees would receive 50 per cent of the revised basic salary from July 1, 2026, with the remaining 50 per cent taking effect from July 1, 2027. Revised allowances and other financial benefits were proposed for implementation from the 2028-29 fiscal year.

However, officials reviewing the proposal found that annual increments received by many employees over the past year had already narrowed the gap between existing and proposed salaries. As a result, implementing only half of the revised basic pay would leave many employees with only a marginal increase, creating inconsistencies across different grades.

This prompted discussions on a two-phase model under which the revised basic salary would take effect from July 1 this year, while allowances and other benefits would be introduced in the 2027-28 fiscal year. That proposal has also yet to receive final approval.

Sources said the latest discussions have again shifted  towards a revised three-phase plan, under which only the revised basic salary would be introduced initially, with allowances and other monetary benefits phased in later.

Even at the latest committee of secretaries' meeting, officials failed to reach a final decision on the implementation roadmap.

Government insiders also said some recommendations of the National Pay Commission are being reviewed before the gazette is issued to ensure the final package remains consistent with the government's fiscal capacity and long-term expenditure plans.

The financing of the new pay scale also came up during the visit of an International Monetary Fund (IMF) delegation to Dhaka between July 12 and July 16. During a meeting with Finance Minister Amir Khasru Mahmud Chowdhury, the delegation discussed the government's financing plan for the revised salary structure.

Officials familiar with the discussions said the IMF raised no formal objection to implementing the pay scale, although fiscal management and budget sustainability featured prominently in the broader discussions.

The government has allocated Tk 89,836 crore for salaries and allowances in the FY2026-27 budget. Including pensions and gratuity, total employee compensation has been set at Tk 125,515 crore, while the overall allocation for the public administration sector stands at Tk 141,434 crore, nearly Tk 55,000 crore higher than the revised allocation of the previous fiscal year.

Officials involved in the budget process said a substantial portion of the additional allocation has been earmarked for implementing the Ninth National Pay Scale.

However, Finance Ministry officials said the pace of implementation would ultimately depend on the government's fiscal position.

A senior Finance Ministry official, requesting anonymity because he was not authorised to speak publicly, said the government is facing a budget deficit of Tk 236,850 crore in the current fiscal year.

"The pace of implementation will largely depend on revenue collection, borrowing requirements and the overall fiscal situation," the official said.

The National Pay Commission submitted its recommendations in 2025 after reviewing the existing salary structure. It proposed salary increases ranging from 100 per cent to 142 per cent across different grades, raising the minimum basic salary to Tk 20,000 and the highest to Tk 160,000, while retaining the existing 20-grade structure.

The proposed revision is expected to benefit a large number of government officials, employees and pensioners, but will also significantly increase the government's recurrent expenditure.

With no gazette yet issued, public servants remain uncertain over both the implementation schedule and the final structure of one of the country's most anticipated public sector reforms.