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Govt salaries set for major overhaul

Millions of government employees could receive substantially higher basic salaries under the proposed ninth national pay scale, with the government planning to introduce the revised structure in two phases and potentially double basic pay across grades 1 to 20.

The final review committee has approved its report on the recommen dations of the 9th National Pay Commission, according to an e-book published by the Prime Minister’s Office on Monday to mark the government’s first 180 days in office.

Under the proposed arrangement, revised basic salaries would take effect in the first year, while house rent and other allowances would be introduced from the following year.

The proposed FY2027 national budget has allocated Tk89,836 crore for salaries and allowances of government employees. Total expenditure on salaries, pensions and gratuities has been projected at Tk1,41,434 crore.

The 9th National Pay Commission, formed in July 2025, recommended increases of between 100 per cent and 140 per cent in salaries and allowances while retaining the existing 20-grade structure.

It proposed raising the minimum basic salary from Tk8,250 to Tk20,000, while the maximum basic salary would increase from Tk78,000 to Tk1,60,000.

A 10-member committee headed by Cabinet Secretary Nasimul Ghani was formed in April to review the pay commission’s recommendations. The Prime Minister’s Office publication said all members of the committee have now signed the final report.

The proposed revisions would represent a significant increase in the basic pay of public servants, although the full financial impact would depend on the implementation of allowances and other components of the revised pay structure.

Finance Minister Amir Khosru Mahmud Chowdhury had earlier announced that the new pay structure would be implemented from 1 July.

The two-phase approach is intended to spread the financial burden of the revised pay structure, with the basic salary adjustments coming first and house rent and other allowances following a year later.

The government’s decision comes amid longstanding demands from public servants for an adjustment to salaries to reflect rising living costs and changing economic conditions. The proposed scale, if approved in its current form, would significantly revise the remuneration structure for employees across all 20 grades.

The final review by the Cabinet Secretary-led committee now clears a key stage in the process, with the government expected to take further steps towards implementing the proposed ninth pay scale.