New pay scale notified

| Salary hikes to be phased in from July 2026
| Minimum salary 20,000, maximum 156,000

The government has formally introduced a new pay and allowance structure for public servants, seeking to bring greater clarity and consistency to the remuneration system and strengthen administrative governance.

The Finance Division issued the long-awaited notification on Saturday, setting out revised basic salaries, allowances, pensions and higher-grade provisions for government employees.

Titled the “Service (Pay and Allowances) Order, 2026”, the notification makes the new pay structure effective from 1 July 2026.

Under the new scale, the minimum basic salary has been set at Tk20,000, while the maximum is Tk1,56,000.

The Cabinet Secretary and Principal Secretary to the Prime Minister, who hold special ranks, will receive a basic salary of Tk1,72,000, while Senior Secretaries and officials of equivalent rank will receive Tk1,64,000.

However, the revised salaries and arrears will not be paid in a single instalment. The government will implement the increases in three phases.

From 1 July to 31 December 2026, officers in Grade 1 and above will receive 40 per cent of the salary increase, while employees in Grades 10-20 will receive 50 per cent.

From 1 January to 30 June 2027, the corresponding rates will rise to 70 per cent and 75 per cent respectively.

The full revised basic salary, including annual increments, will take effect from 1 July 2027.

20-grade structure
The notification sets out a revised basic pay structure covering 20 grades. Basic salaries for Grades 1-11 have been increased by 100 per cent, while the overall increase in basic pay ranges from 100 per cent to 142 per cent, depending on grade.

The new structure also revises a range of allowances covering medical care, housing, education, transport, travel, tiffin, mobile phone use and hospitality.

House rent capped at 60pc House rent allowance has been linked to both grade and place of posting.

In the Dhaka North and Dhaka South city corporation areas, employees in Grades 16-20 will receive 60 per cent of basic pay, those in Grades 10-15 50 per cent, Grades 5-9 45 per cent, and Grades 1-4 40 per cent.

Rates will be lower in other city corporations and specified areas, while separate rates will apply to district headquarters, upazilas and other locations.

Employees living in government accommodation will not receive house rent allowance.

Although some allowance rates have been reduced, including house rent and the Bangla New Year allowance, their monetary value may still rise because of the higher basic salaries.

A proposal has also been made to reduce the annual increment rate for employees in higher pay grades.

Allowances revised Monthly medical allowance will be Tk3,000 for employees aged up to 50, Tk4,000 for those aged over 50 to 60, Tk5,000 for those over 60 to 70, and Tk6,000 for those above 70.

An education allowance of Tk500 per child per month, up to Tk1,000 for two children, will be available for children up to 23 years of age, subject to prescribed conditions.

Employees in Grades 11-20 working in city corporation areas will receive Tk600 a month as transport allowance and Tk500 as tiffin allowance.

Mobile allowance has been fixed at Tk500 for officers in Grade 5 and above and Tk150 for employees in Grades 6-20.

A hill allowance of 20 per cent of basic pay, subject to a prescribed ceiling, has also been introduced for employees serving in hilly areas. Special allowances will apply to officials working in remote areas, including haors, islands and chars.

Monthly hospitality allowance will be Tk2,000 for the Cabinet Secretary and Principal Secretary to the Prime Minister, Tk1,000 for Senior Secretaries and Secretaries, Tk900 for Additional Secretaries and Tk600 for Joint Secretaries and other eligible officials.

Pension, higher grades revised
The order also provides for revised net pensions for retirees and lifelong family pensioners.

From 1 July 2026, the revised net pension will range from Tk10,000 to Tk70,200, with the increase being implemented in three phases and full implementation scheduled for 1 July 2027.

Existing rates of pension and gratuity will remain unchanged.
Under the higher-grade provision, a permanent employee completing eight years of satisfactory service in the same post without promotion will qualify for the first higher grade in the ninth year.

A second higher grade may be granted after another six years of service. No employee will be entitled to more than two higher grades during their career.

The new pay structure does not cover members of the Bangladesh Judicial Service, military personnel, police, Border Guard Bangladesh (BGB), daily-wage and contractual workers, or employees engaged through outsourcing.

Allowances from 2028
Despite the new pay structure taking effect from July 2026, employees will not receive the revised allowance rates immediately.

Under Clause 1(3)(j) of the notification, all allowances will continue under the existing structure from 1 July 2026 to 31 December 2027.

The revised allowance rates under the new pay scale will come into effect from 1 January 2028.

The phased implementation separates the immediate revision of basic pay from the later adjustment of allowances, pensions and other benefits, setting out a transition intended to provide a structured framework for implementing the new public-sector remuneration system.