New Pay Scale Likely to Roll Out in Three Phases Starting July

The government is considering the implementation of a new pay scale for public officials and employees starting from July this year. According to sources within the Ministry of Finance, the government plans to allocate at least BDT 35,000 crore in the upcoming budget to begin a partial rollout from the first day of the 2026-27 fiscal year.

A committee reorganized to review the recommendations of three previous salary commissions has proposed a phased implementation of the ninth pay scale. Under this plan, 50% of the proposed basic salary increase would be implemented in the first year, followed by the remaining portion in the next fiscal year. Allowances and other benefits are expected to be integrated by the 2028-29 fiscal year.

The 23-member salary commission, led by former Finance Secretary Zakir Ahmed Khan, submitted its report to Chief Adviser Professor Muhammad Yunus on January 21. The report highlighted that the government currently spends BDT 1.31 lakh crore on 1.4 million government employees and 900,000 pensioners. Full implementation of the new proposals could require an additional BDT 1.06 lakh crore.

Separate reports have also been prepared for the Judicial Service Pay Commission and the Armed Forces. A 10-member committee, headed by the Cabinet Secretary, was formed last month to synthesize these recommendations into a final framework, ultimately leaning toward the three-phase strategy to manage the fiscal impact.

A high-ranking official from the Ministry of Finance, speaking on condition of anonymity, told The Daily Campus that the committee’s recommendations are currently under review. "Special allocations may be reserved in the upcoming budget for this purpose. The initial plan focuses on increasing the basic salary, followed by medical and other allowances in subsequent stages. However, the final approval must come from the highest levels of government," the official stated.

If the decision is finalized, the phased approach aims to provide much-needed financial relief to government employees while maintaining macroeconomic stability through staggered public expenditure.