Proposed New Pay Scale: 1:8 Ratio and BDT 35,000 Crore Allocation Likely

The Ministry of Finance has drafted a proposal to begin implementing the new national pay scale for government employees starting this July. According to ministry sources, the government is planning to allocate between BDT 30,000 and 35,000 crore in the upcoming 2026-27 fiscal year budget to facilitate the first phase of this rollout.

The final structure of the pay scale is expected to be confirmed following a high-level meeting with Prime Minister Tarique Rahman. If approved, the implementation will begin partially on the first day of the new fiscal year (July 1, 2026).

Closing the Wage Gap: The 1:8 Ratio

One of the most significant shifts in the proposed structure is the adjustment of the pay ratio between the lowest and highest grades. The ratio is set to become 1:8, a notable reduction from the current 1:9.4.

Proposed Salary Adjustments:

• Minimum Basic Pay: Increasing from BDT 8,250 to BDT 20,000.

• Maximum Basic Pay: Increasing from BDT 78,000 to BDT 1,60,000.

• Structure: The existing 20-grade system will remain, though salary increases across these grades are recommended to range between 100% and 140%.

• Special Tiers: A separate salary bracket is being considered for the Cabinet Secretary, Principal Secretary to the PM, and Senior Secretaries, which will be finalized via a subsequent gazette notification.

Three-Phase Implementation Plan

To manage the massive fiscal requirement—estimated at an additional BDT 1.06 lakh crore for full implementation—the 10-member committee led by the Cabinet Secretary has recommended a three-stage rollout:

1. Year 1 (FY 2026-27): Allocation of BDT 35,000 crore to provide 50% of the increased basic pay.

2. Year 2 (FY 2027-28): Implementation of the remaining basic pay increase.

3. Year 3 (FY 2028-29): Integration of revised medical, house rent, and other allowances.

Background and Fiscal Impact

The recommendations originated from a 23-member salary commission led by former Finance Secretary Zakir Ahmed Khan, which submitted its report on January 21. Currently, the government spends approximately BDT 1.31 lakh crore annually on salaries and pensions for 1.4 million employees and 900,000 pensioners.

While the previous interim government had initially set aside BDT 30,000 crore for the 9th Pay Commission, the plan was deferred. The current administration is now moving forward with a revised strategy that seeks to balance the financial well-being of public servants with national budgetary constraints.

"The recommendations are under active observation," a top finance official told The Daily Campus. "The primary focus of the upcoming budget is the basic salary hike. Adjustments to other allowances will follow once high-level executive approval is secured."