Business Report :
The government has established the National Pay Commission 2025 to recommend an updated and appropriate salary structure for employees across government, semi-government, autonomous bodies, state-owned banks and financial institutions, public universities, and state-run industrial enterprises.
A notification issued by the finance ministry on Sunday appointed former finance secretary Zakir Ahmed Khan as chairman of the commission, which comprises three full-time and 19 part-time members. The commission has been tasked with submitting its recommendations within six months of its first meeting.
The decision to form the commission was taken at the Advisory Council meeting last Thursday, chaired by Chief Adviser Professor Muhammad Yunus.
According to the finance ministry circular, the commission will review existing salaries, allowances, and benefits and propose a modern, rational pay structure for officers and employees. It will also develop salary schemes for specialised services and determine how income tax obligations can be integrated within the pay framework for government staff.
In addition to salaries, the commission will assess and rationalise other benefits, including house rent, medical, transport, hospitality, deputation, responsibility, dearness, festival, and recreation allowances. It will recommend mechanisms to adjust salaries in line with inflation and propose updated retirement and pension benefits.
The notification states that the commission will ensure employee performance is reflected in the pay structure and suggest monetising direct government-provided benefits-such as access to phones, vehicles, and rations-to enhance financial accountability. It will also propose measures to eliminate inconsistencies in grade progression and salary increments.
In framing its recommendations, the commission has been directed to consider factors such as the cost of living for a six-member household (including parents), education and healthcare expenses for up to two children, the country’s economic growth, government resources, administrative and security needs, and the financial positions of respective institutions.
Other considerations include resource allocation for poverty reduction, strategies to gradually make institutions self-reliant, recruitment of talented officials, and improving service quality through enhanced efficiency and initiative.
The full-time members of the commission include former finance secretary Mohammad Ali Khan, former comptroller and auditor general Md Moslem Uddin, and former ambassador Md Fazlul Karim.
