Ninth Pay Scale Proposes Major Salary Increases

The proposed ninth national pay scale for Bangladesh’s government officials and employees recommends raising basic salaries across Grades 1 to 20 by as much as 100 per cent. The proposal also envisages a phased implementation rather than introducing the entire structure at once, with basic salaries potentially revised in the first year and house rent, medical allowances and other benefits introduced in the following year.

The administrative process has moved another step forward after all members of the committee formed to finalise the report on the ninth pay scale signed the document. The move clears an important procedural stage, although final government approval, the implementation timetable and the precise rates of salary and allowances remain to be determined.

Details of the proposed reform were also highlighted in an e-book titled ‘180 Days of the People’s Government’, published to mark 180 days of the government’s tenure. The document presents the ninth national pay scale as a significant potential change for public-sector employees.

According to the information contained in the e-book, Tk89,836 crore has been allocated for salaries and allowances of government officials and employees in the 2026–27 financial year. When expenditure related to government employees, including pensions and gratuities, is taken into account, the total allocation rises to Tk1,41,434 crore. Any substantial increase in salaries and allowances would therefore have wider implications for recurring government expenditure and future budget planning.

The ninth National Pay Commission was formed on 27 July 2025, almost 12 years after the existing pay structure was introduced. The 23-member commission was headed by former Finance Secretary Zakir Ahmed Khan and submitted its report to then Chief Adviser Professor Muhammad Yunus on 21 January this year.

The commission recommended retaining the existing 20-grade system while proposing increases of between 100 and 140 per cent in salaries and allowances. Under its proposed structure, the minimum basic salary would rise from Tk8,250 to Tk20,000, while the maximum basic salary would increase from Tk78,000 to Tk1,60,000.

Following a review of the commission’s recommendations, a 10-member committee was formed on 21 April under Cabinet Secretary Nasimul Gani. Its task was to prepare a practical pay structure that could be implemented while taking the government’s financial capacity into account. The committee includes senior officials from finance, public administration, law, defence, education and health, along with representatives from the armed forces and the government’s accounting administration.

The demand for a revised pay structure has also been linked to the rising cost of living faced by public employees. During the budget presentation, the Finance Minister noted that government employees had been working under the same pay structure for around 11 years. Over that period, household expenses related to food, housing, education, healthcare and other essentials have increased considerably, putting pressure on employees’ real incomes and purchasing power.

The government had also indicated during the national budget presentation that it intended to initiate implementation of the new pay structure from 1 July. However, questions remain over which components will take effect first, how house rent and other allowances will be calculated, and how the overall reform will be aligned with the government’s fiscal capacity.

If implemented, the ninth pay scale could provide long-awaited relief to government employees and improve their ability to cope with higher living costs. At the same time, a major increase in public-sector remuneration would have significant consequences for government finances, including recurring expenditure, pension liabilities and future budget commitments.

A two-stage implementation could help spread the additional financial burden over time. For employees, however, the timing and scale of increases in allowances will be just as important as the rise in basic salary. The actual impact of the ninth national pay scale will become clearer once the government gives final approval and announces the detailed implementation schedule.