National Pay Scale: Private Sector Should Also Build Capacity

The government has approved a new national pay scale that increases salaries, allowances, and pensions for government employees. It will come into effect on July 1, 2026. Under this scale, basic pay will rise by 100 to 142 percent, depending on the grade, and will be implemented in three phases over a two-year period.

This is undoubtedly a major economic decision for the government, taken within just six months of assuming office. Approximately 2.4 million employees will benefit from the implementation of the new pay structure. Additionally, over 900,000 retired employees and other beneficiaries will be covered under this scheme.

In total, there will be approximately 3.3 million beneficiaries, representing less than 2 percent of the country’s total population of 180 million.

Earlier on Monday, the government at a cabinet meeting approved the new pay scale after taking into account the government’s financial capacity, the overall economic situation, inflation, the cost of living, the standard of living of government employees, and the need for a balanced and rational pay structure.

Any positive step is praiseworthy. After all, it is only natural that a government formed by the people should work for the welfare of the people; this is both their duty and the public’s expectation. However, to meet this additional expenditure, the government will naturally need to increase its revenue.

If those benefiting from the salary and allowance hikes refrain from succumbing to the tide of state corruption, misconduct, and waste, and instead firmly curb unnecessary expenditure while earning an honest living, the results would be immensely beneficial.

If government revenues do not end up in the pockets of dishonest individuals and groups at various stages but are instead deposited fully into the state treasury, achieving revenue targets and covering additional expenses would not be a challenge.

At the same time, the authorities must take stringent measures to control the market. If opportunistic traders act irrationally and start hiking the prices of all commodities right away, it will have a severe impact on employees in the vast private sector; their lives, and those of their families, could become unbearable. Therefore, it is essential to create an environment conducive to business, investment, and production for private sector entrepreneurs and investors.

Therefore, the private sector industrialists and financiers must also be provided with adequate incentives where necessary, enabling them to raise their employees’ salaries and allowances to reasonable levels.

It is a legitimate expectation of all parties to ensure a minimum level of parity and consistency regarding the benefits and standards of living for professionals across all sectors of the country.