New Pay Scale Effective From July 1: Finance Minister

The 9th National Pay Scale for government officers and employees will officially take effect from July 1, the beginning of the upcoming fiscal year. Finance and Planning Minister Amir Khasru Mahmud Chowdhury confirmed the timeline during an exclusive interview at his office on Monday (May 18).

"The new salary framework will be implemented at the very start of the next fiscal year, meaning July 1. We are currently working on the most optimal approach to execute this smoothly," the Finance Minister stated.

The development follows recent directives from Prime Minister Tarique Rahman, who instructed relevant authorities to ensure the structural rollout aligns with the start of the 2026-27 fiscal year. While necessary financial provisions are being allocated in the upcoming national budget, officials confirmed that the salary commission's initial recommendations will not be implemented all at once due to prevailing economic constraints.

Staggered approach amid fiscal constraints

When questioned whether the government is adopting a three-phase implementation strategy as recommended by the high-level evaluation committee led by Cabinet Secretary Nasimul Gani, the Finance Minister acknowledged the tough economic backdrop.

"The committee has submitted its recommendations. However, we must operate within strict budgetary limitations. We are currently navigating a highly challenging economic landscape," the minister explained. "The overall state of the economy is strained, and revenue collection relative to GDP remains low. Consequently, we are being forced to trim down expenditures and downsize allocations across various sectors. Despite these hurdles, we are prioritizing the implementation of the new salary structure."

To finalize the budgetary allocations, Prime Minister Tarique Rahman presided over two consecutive high-level meetings at the Secretariat last Wednesday and Thursday to dissect the 2026-27 fiscal year budget blueprint. The implementation committee has summoned another crucial meeting on Thursday (May 21), where sources indicate the final operational roadmap will be locked in.

Financial breakdown of the 3-year phased strategy

Marking the first major overhaul of the public sector salary structure in 11 years, the government is leaning toward a three-stage rollout to avoid straining the national treasury.

• Total Financial Requirement: Implementing the comprehensive pay scale will require an estimated Taka 1,06,000 crore, with an additional Taka 25,000 crore required to clear upgraded pension benefits, totaling a cumulative fiscal package of Taka 1,31,000 crore.

• Phase 1 Allocation (FY 2026-27): The upcoming budget is expected to allocate a preliminary installment of at least Taka 35,000 crore. Under this phase, civil servants, judicial staff, defense forces, and autonomous and semi-government employees will receive 50% of their newly designated basic salary.

• Phase 2 Execution (FY 2027-28): The remaining 50% of the basic salary adjustment will be integrated into the state payroll.

• Phase 3 Finalization (FY 2028-29): The final stage will oversee the 100% implementation of all structural allowances, perks, and subsidiary fringe benefits.