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Govt issues new pay scale rules for contractual appointees

Published : Thursday, 29 October, 2026 at 11:14 PM

Observer Online Report

Collected Photo

The government has introduced eight new decisions on salaries, allowances and other benefits for officials appointed on a contractual basis under the National Pay Scale 2026, with the rules taking effect retrospectively from July 1.

The Finance Division of the Ministry of Finance issued the notification on Thursday (October 29), replacing an earlier notification issued on January 26, 2016.

Under the new rules, contractual employees appointed under the 2015 pay scale whose contracts remained valid after July 1 will have their salaries adjusted according to the new pay scale, subject to amendments to their contracts. The revised salaries will be effective from July 1, based on the applicable grade and step.

For individuals appointed to contractual positions on or after July 1, salaries will generally be determined in line with the grade and step corresponding to their basic salary immediately before retirement. In special cases, however, the government may determine the salary separately, or the amount agreed upon by both parties in the contract may apply.

The notification clarifies that gross pension, including the amount before commutation or surrender, and any special additional pension will not be deducted when determining contractual salaries.

However, contractual appointees will not receive annual increments, gratuity or increased pension benefits for service during the contractual period.

For individuals who have not retired from government service, salary, allowances and other contractual conditions will be determined on a case-by-case basis, considering their qualifications and merits, in coordination with the Public Administration Ministry and the Finance Division.

The notification also cancels provisions of previous orders, memoranda and instructions that conflict with the new rules. Earlier directives consistent with the notification will remain in force. Subsequent government orders on contractual salaries and allowances will also apply where relevant.

The notification was signed by Finance Division Joint Secretary Sharif Nazrul Islam on behalf of the President. Existing contracts must be amended where necessary to comply with the revised provisions.

-AH

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Editor : Iqbal Sobhan Chowdhury

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