B Mirror Report:  The government has decided to begin implementing a new pay structure for public sector employees in phases starting from July, according to officials familiar with the matter.

Multiple sources told to media that the decision was conveyed by the Prime Minister during a meeting on the next fiscal year’s budget with senior officials of the Ministry of Finance on Wednesday.

A senior Finance Ministry official, requesting anonymity, said, “The Prime Minister has decided that the new pay scale will be implemented from the first day of the 2026–27 fiscal year. We will start receiving salaries under the new structure from July, there is no doubt about it.”

He added that the implementation will take place in multiple stages, although the exact portion of the revised salary to be disbursed from July has not yet been finalized.

Officials indicated that the full pay structure may be implemented over three fiscal years. Under the plan, 50% of the increased basic salary under the new structure could be introduced from July 2026–27, with the remaining 50% added in the 2027–28 fiscal year. Allowances may be adjusted in the 2028–29 fiscal year.

They said a phased rollout is intended to reduce pressure on inflation while making government financing more manageable.

According to ministry officials, more than Tk 30,000 crore may be allocated in the upcoming fiscal year to cover half of the increased basic salaries. Currently, about Tk 85,000 crore is allocated for salaries and allowances of nearly 1.5 million government employees.

The draft budget speech prepared by Finance Ministry officials is expected to include provisions for phased implementation of the new pay structure from the next fiscal year.

Officials also said that when the proposal and funding plan were presented before the Prime Minister, she approved the implementation from July.

Earlier, the interim government led by Professor Muhammad Yunus formed a National Pay Commission last year, which submitted its report on January 22. The commission recommended salary increases ranging from 100% to 147% across different grades.

Under the proposed structure, the minimum basic salary for Grade 20 would rise from Tk 8,250 to Tk 20,000, while the highest pay would increase from Tk 78,000 to Tk 160,000. The proposal also includes increased allowances and enhanced pension benefits.

The estimated total cost of implementing the new pay scale is Tk 106,000 crore for active employees, with an additional Tk 25,000 crore required for pensioners.

The commission recommended a phased implementation, citing the country’s revenue position and broader macroeconomic conditions.