PM Directs Implementation of New Pay Scale from July 1

Prime Minister Tarique Rahman has directed the authorities concerned to implement the 9th National Pay Scale for government officials and employees from the beginning of the 2026-27 fiscal year. An official from the Ministry of Finance confirmed the development, indicating that necessary allocations for the new pay scale are likely to be incorporated into the upcoming national budget.

Faced with the challenge of mobilizing a massive amount of financial resources, the government is planning a three-phase implementation strategy rather than executing the entire financial package at once. The formal proposal for the 9th National Pay Scale is scheduled to be presented in the National Parliament this June.

Speaking on the condition of anonymity, a Finance Ministry official stated that the Prime Minister has issued explicit instructions to begin implementing the new structure from July 1. Consequently, government employees will start receiving salaries under the revised framework from that month, clearing up any lingering uncertainties regarding the timeline.

Officials familiar with the matter noted that preparatory work for the 9th National Pay Scale has already commenced. A specialized 10-member committee is currently analyzing various recommendations to provide their final assessment. However, sourcing the required funds remains a significant hurdle, prompting the government to adopt a phased approach.

The full execution of the new salary structure will require approximately 106,000 crore BDT, with an additional 25,000 crore BDT needed to cover pension benefits, bringing the total financial requirement to 131,000 crore BDT. In comparison, the allocation for salaries and allowances in the current fiscal year stands at around 85,000 crore BDT.

The budget session of the 13th National Parliament is set to begin on the afternoon of June 7, where Finance Minister Amir Khosru Mahmud Chowdhury will present the national budget for the 2026-27 fiscal year. The Finance Minister is expected to officially announce the pay scale and outline its structural components during this session.

Under the three-phase implementation strategy, the upcoming budget may include an initial potential allocation of 35,000 crore BDT. Once allocated, this first phase will see an increase in a specific portion of the basic salary. The remaining portion of the basic salary will be adjusted in the following fiscal year, while supplementary allowances and other benefits will be fully scaled up by the 2028-29 fiscal year.

This new pay commission framework is designed to provide financial security to approximately 1.4 million active government employees and around 900,000 pensioners. High-level policy reviews of the proposed structure are currently undergoing final evaluations.

According to the preliminary proposals, the basic salary for the lowest tier (20th grade) may be raised from 8,250 BDT to 20,000 BDT. Similarly, the highest tier salary could see an increase from 78,000 BDT to 160,000 BDT. These figures remain at the proposal stage and will officially come into effect from July once the formal government gazette is published.