Massive Pension Hike Recommended in 9th Pay Scale
Benefits to Double for Low-Income Retirees
The National Pay Commission concluded its final high-level meeting at 3:45 PM today, Wednesday (January 21), bringing significant "good news" for the country’s retired government officials and employees. In a major move to provide relief against inflation, the Commission has recommended a substantial increase in pension rates, with the lowest-income pensioners set to see their monthly benefits double.
The 21-member commission, headed by Zakir Ahmed Khan, finalized the draft at the Cabinet Division’s conference room. The report is scheduled for formal submission to Chief Adviser Muhammad Yunus at the State Guest House, Jamuna, at 5:00 PM today.
The New Pension Structure
According to sources within the Commission, the proposed 9th Pay Scale introduces a tiered increase for pensioners to ensure social security for the elderly:
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Below Tk 20,000 Monthly Pension: Recommended for a 100% increase (benefits will double).
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Tk 20,000 to Tk 40,000 Range: Recommended for a 75% increase.
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Above Tk 40,000 Range: Recommended for a 55% increase.
Major Boost in Medical Allowances
The Commission has also focused on healthcare support for retirees, proposing a significant hike in monthly medical allowances:
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Aged 75 and Above: Recommended medical allowance of Tk 10,000 per month (up from the current Tk 8,000).
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Aged Below 55: Recommended medical allowance of Tk 5,000 per month.
Implementation and Salary Highlights
While the pension benefits were the highlight of the final session, the Commission reiterated its core recommendations for active service holders:
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Salary Hike: An average recommended increase of 105%.
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Grade 20 (Lowest): Basic pay proposed to rise from Tk 8,250 to Tk 20,000 (a 147% jump).
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Grade 1 (Highest): Basic pay proposed to rise from Tk 78,000 to Tk 1,60,000.
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Timeline: Partial implementation is proposed from January 1, 2026, with full effectiveness starting July 1, 2026.
Finance Adviser Dr. Salehuddin Ahmed will accompany the Commission Chairman during the 5:00 PM handover ceremony. Currently, 1.5 million active employees and several hundred thousand pensioners are awaiting the final approval of this report by the Advisory Council.
