New pay scale issued, salaries rise up to 142%

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New pay scale issued, salaries rise up to 142%

The government has formally issued the long-awaited new pay scale for government employees, raising basic salaries by 100% to as much as 142% depending on the grade.

The Finance Division issued a gazette notification titled “Government Service (Pay and Allowances) Order, 2026”, making the new pay structure effective from July 1, 2026. However, the increased basic salaries will be implemented in three phases.

Under the first phase, covering July 1 to December 31, officials in Grade 9 and above will receive 40% of the increased basic pay, while employees in Grades 10 to 20 will receive 50%. The amount will be added to the salary drawn or payable as of June 30.

In the second phase, from January 1 to June 30, 2027, Grade 9 and above employees will receive 70% of the increased basic pay, while Grades 10 to 20 will receive 75%. The full revised basic pay will take effect from July 1, 2027.

Employees will also receive arrears of the increased salaries payable from July 1, 2026.

All other allowances and benefits under the new pay structure will come into effect from January 1, 2028. Pensioners will also receive the benefits provided under the revised pay structure.

The new pay scale retains 20 grades. Basic salaries for Grades 1 to 10 have been increased by up to 100%, while employees in Grades 11 to 20 will see increases of up to 142%.

Under the revised structure, the basic salary of Grade 1 officials has increased from Tk 78,000 to Tk 156,000. The minimum basic salary for Grade 20 has risen from Tk 8,250 to Tk 20,000, representing a 142% increase.

The basic salary for Grade 9 has doubled from Tk 22,000 to Tk 44,000. Newly recruited BCS officers entering Grade 9 will also be covered by the new pay structure.

The ratio between the highest and lowest basic salaries has narrowed to 1:1.78 from 1:1.945 under the previous structure.

The new structure also introduces a monthly allowance of Tk 3,000 for employees with children with special needs.

Around 2.4 million serving military and civilian employees are expected to benefit from the new pay structure, along with around 925,000 retired employees and other beneficiaries.

The implementation is expected to increase the government’s annual expenditure by approximately Tk 105,580 crore.

The gazette was issued following legal scrutiny by the Ministry of Law. The National Pay Commission 2025, formed in July last year under former finance secretary Zakir Ahmed Khan, submitted its report on January 21, 2026, recommending salary and allowance increases of 100% to 140%.

A 10-member committee headed by Cabinet Secretary Nasimul Gani was subsequently formed on April 21 to review the recommendations and oversee implementation. Based on the committee’s final recommendations, the Cabinet approved the new National Pay Scale 2026 on August 31.

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