Tk 20,000cr allocated for new Pay Scale, implementation possible this month

The interim government may partially implement the new national pay scale for government employees as early as this month, according to sources within the Finance Ministry. To facilitate this, an additional allocation of approximately Tk 20,000 crore has been earmarked in the revised budget to cover salaries and allowances for over 1.5 million public servants.

A senior Finance Ministry official indicated that a formal announcement regarding the new salary structure could arrive before the national elections scheduled for February 12. The National Pay Commission is expected to submit its final report by January 21.

Budgetary Realignments

Sources suggest that either the revised basic salary or new allowance structures could take effect from January. The government believes the extra allocation in the revised budget will be sufficient for this initial rollout.

While the total size of the revised budget was trimmed by Tk 2,000 crore to Tk 7.88 lakh crore, the non-development (operating) budget was increased by Tk 28,000 crore. A significant portion of this surge is dedicated to the new pay scale. Consequently, the allocation for salaries and allowances is expected to cross the Tk 1 lakh crore mark, up from the original Tk 84,114 crore.

Specialized Structures and Reforms

The 9th Pay Commission, headed by former Finance Secretary Zakir Ahmed Khan, is considering separate salary structures for state-owned banks to help them remain competitive with the private sector. Similar separate proposals may also be drafted for the Judiciary and the Armed Forces.

The commission is factoring in a decade of inflation to ensure that the "real wages" of employees do not fall below 2015 levels. It is also looking to bridge the wage gap by proposing a salary ratio of 1:8 between the lowest and highest grades.

Conflicting Timelines

Despite the budgetary preparations, there are conflicting views on the timing of the announcement. Bangladesh Bank Governor Dr. Ahsan H. Mansur expressed skepticism regarding a pre-election rollout. "I do not see the possibility of a new pay scale announcement before the polls. It would be more logical for the interim government to leave the final decision to the elected administration," he told the media.

He further revealed that three proposals for the minimum basic salary are currently under review: Tk 16,000, Tk 17,000, and Tk 21,000.

Finance Adviser Dr. Salehuddin Ahmed maintained a neutral stance, stating that a decision would only be reached once the 21-member commission submits its full report. "We will decide on the implementation and announcement once we have the report in hand and have evaluated the recommendations," he said.

The last national pay scale was implemented in 2015. After a decade-long gap, over 1.5 million government, autonomous, and state-bank employees are now awaiting the finalization of this milestone financial reform.