The proposed ninth national pay scale for government employees has moved closer to a final decision after the committee of secretaries, led by the Cabinet Secretary, completed its review of the draft and reached an in-principle position. The proposal could now be placed before the Cabinet as early as this week, subject to the Prime Minister’s approval, according to officials familiar with the process.
The development has raised expectations among government employees, who have been waiting for a revised national pay structure since the eighth pay scale came into effect in 2015. However, the draft prepared by the committee of secretaries should not yet be treated as the final pay structure. Cabinet discussions may result in changes to salary increases, allowances, implementation dates and other financial benefits.
Up to 100 per cent increase proposed
One of the most significant features of the current draft is the proposed revision of basic salaries. The committee has reportedly recommended increases of up to 100 per cent, although the rate would not be uniform across all grades.
Lower-paid employees are expected to receive comparatively larger increases. The approach reflects concerns over the rising cost of essential goods and services, including food, housing, education and healthcare. For lower-income government employees in particular, maintaining purchasing power has become a central consideration in discussions surrounding the new pay structure.
The proposal therefore appears to place greater emphasis on reducing disparities between grades rather than applying an identical percentage increase to every government employee.
Implementation could take two stages
The draft reportedly envisages implementing the new pay structure in two stages. The first stage would focus primarily on revising basic salaries, while allowances and other financial benefits could be reviewed or increased during a subsequent phase.
Some provisions may be made effective retrospectively from July this year, according to the proposal. The government could then introduce the remaining components gradually, with the entire structure targeted for implementation by January 2028.
That timetable, however, remains subject to Cabinet approval. The final decision will determine both the effective date and the pace at which different elements of the pay scale are introduced.
Separate committee examining judicial salaries
Issues relating to the judiciary have emerged as another important consideration in finalising the overall structure. A seven-member committee headed by Finance Minister Amir Khasru Mahmud Chowdhury has been formed to examine matters concerning the salaries and benefits of judges and related categories.
Determining remuneration for the judiciary involves constitutional and administrative considerations alongside the government’s financial capacity. As a result, decisions in this area may have a bearing on the final shape of the wider remuneration framework.
The recommendations of the special committee will therefore be closely watched as the government moves towards final approval.
Difference from pay commission recommendations
The proposed structure also differs from the recommendations submitted by the ninth Pay Commission in July 2025. The commission had recommended increases in basic salaries ranging from 100 to 140 per cent.
Its recommendations included raising the minimum basic salary from Tk8,250 to Tk20,000 and the maximum basic salary from Tk78,000 to Tk160,000.
The current draft’s proposal for a maximum increase of 100 per cent is therefore more restrained than the Pay Commission’s recommendations. At the same time, the greater emphasis on lower grades represents a notable feature of the committee’s approach.
The difference highlights the challenge facing policymakers: balancing employees’ expectations for higher incomes against the government’s ability to finance a significantly larger recurring wage bill.
Wider implications for government finances
A new pay scale would have consequences extending well beyond monthly salaries. Higher basic pay would increase the government’s regular expenditure, while revisions to allowances could add further pressure to public finances.
The impact could also extend to pensions, retirement benefits and other government liabilities linked to employee remuneration. The scale and timing of the proposed increases will therefore be significant for budget management and long-term fiscal planning.
For the government, the central challenge will be to improve employees’ real incomes while ensuring that the additional expenditure remains compatible with revenue collection and overall fiscal capacity.
For employees, meanwhile, the principal issue is how much of the proposed increase will ultimately survive the approval process. A higher nominal salary would provide greater financial relief only if the increase is sufficient to offset the effects of higher living costs.
Cabinet decision now holds the key
After nearly a decade without a new national pay structure, the ninth pay scale has reached a decisive stage. Yet the current draft is still not the final document.
The Cabinet’s decision will determine the actual rate of salary increases across grades, the treatment of allowances, the effective dates and the timetable for full implementation. Any amendments made during Cabinet discussions could materially alter the benefits ultimately received by government employees.
For millions of public-sector employees and pensioners whose financial arrangements are linked to the national pay structure, the coming Cabinet decision will therefore be closely watched. If approved, the proposal would mark the most significant overhaul of government remuneration since the eighth national pay scale was introduced in 2015.