9th Pay Scale okayed, lowest salary up 142pc

The government on Monday approved the National Pay Scale 2026, raising the minimum basic salary by 142 percent, in a move aimed at making public servants’ salaries, allowances and other financial benefits more rational and aligned with current economic realities.

The Cabinet approved the new pay scale at its meeting today, along with the Joint Services Instructions 2026 for the armed forces in line with the new structure. Both will take effect from July 1, 2026, according to a Finance Ministry press release.

The decision came after the government reviewed the reports of the National Pay Commission-2025 and the Armed Forces Pay Committee-2025. A committee of secretaries then prepared recommendations taking into account the government’s fiscal capacity, economic conditions, inflation, cost of living, living standards of government employees and the need for a balanced pay structure.

The new pay scale retains the existing 20 grades. It fixes the minimum basic salary for Grade 20 at Tk 20,000, while the maximum basic salary for Grade 1 has been set at Tk 1,56,000.

To improve equity, the ratio between the minimum and maximum basic salaries has been reduced to 1:1.78, from the existing 1:1.945. The minimum basic salary will rise by 142 percent, while the maximum basic salary will increase by 100 percent.

The government has also decided to introduce the One Rank One Pension (OROP) system in line with its election manifesto. As simultaneous implementation for military and civilian personnel would impose a substantial financial burden, and the government lacks data on civilian employees who retired before 2019, OROP will be introduced gradually by 2030.

As an interim measure, the government has approved substantial increases in net pensions on a slab basis to improve pensioners’ living standards and financial security.

Pensioners receiving Tk 9,000 or less in monthly net pension will get a 100 percent increase; those receiving Tk 9,001-Tk 20,000, 75 percent; Tk 20,001-Tk 30,000, 65 percent; Tk 30,001-Tk 40,000, 60 percent; and those receiving Tk 40,001 or more, 55 percent.

The Finance Ministry said the arrangement would provide comparatively larger increases to pensioners who retired many years ago and currently receive relatively low net pensions.

For the first time, the government has also approved a Tk 3,000 monthly allowance for each child with special needs of government employees.

The coverage of mobile allowances has been expanded in view of rising internet and digital communication costs. Previously available only to Grade 5 employees, the allowance will now cover employees in all grades.

The new pay scale will be implemented in phases from July 1, 2026, to limit its impact on inflation and ease the fiscal burden. The government will implement the structure over FY2026-27 and FY2027-28, rather than introducing it all at once.

Priority will be given to employees in Grades 10 to 20, considering their relatively lower incomes.

The revised basic salaries will be implemented in three phases between July 1, 2026 and July 1, 2027, while allowances will come into effect simultaneously from January 1, 2028.

Net pension increases will also be implemented in phases.

A separate committee has been formed for the judicial service. Based on its recommendations, the government will approve a separate Bangladesh Judicial Service Pay Scale, with implementation from July 1, 2026 in phases in line with the National Pay Scale 2026.

The government expects the phased implementation to help contain inflationary pressure.

The new pay scale will benefit around 24 lakh military and civilian employees and more than 9 lakh retired employees and other eligible beneficiaries.

The additional annual expenditure arising from the new pay structure has been estimated at around Tk 1,05,580 crore. The government has made provisions for the additional expenditure in the budgets of the relevant fiscal years under the Medium-Term Budget Framework.

The government expects the new pay scale to strengthen the financial security and motivation of public servants and help build an efficient, dynamic and citizen-friendly public administration.

The Finance Division will issue the necessary gazettes, orders and instructions for implementing the National Pay Scale 2026, detailing pay fixation, allowances, pensions and other post-retirement benefits.

The concerned ministries, divisions, directorates, offices and agencies will also be instructed to take necessary measures for proper implementation of the approved pay scale.