9th Pay Scale: New Notification Issued; Finance Ministry Announces Eight Decisions

The government has announced eight decisions on the salaries, allowances and other benefits of people employed or to be employed on a contractual basis in various civilian posts under the Republic, including government and autonomous institutions, state-owned banks and financial institutions, following the implementation of the National Pay Scale 2026 from July 1.

The Finance Division of the Ministry of Finance issued a circular on Thursday (October 29), signed by Joint Secretary Sharif Nazrul Islam on behalf of the President.

According to the circular, the decisions concern the determination of salaries, allowances and other benefits for people appointed on a contractual basis in the public interest following the implementation of the National Pay Scale 2026.

The eight decisions are as follows:

1. Salary revision for existing contractual employees

Contractual employees appointed under different grades of the National Pay Scale 2015 before July 1, 2026, whose contracts remain in effect beyond that date, will have their salaries determined under the National Pay Scale 2026 from July 1, subject to amendments to their contracts with the government.

Their salaries will be fixed according to the applicable rules for the corresponding grades and steps under the new pay scale.

From July 1, they will be entitled to increased salaries under paragraphs 1(3)(a), 1(3)(b), 1(3)(c), excluding annual increments, and 1(3)(j) of the Service (Pay and Allowances) Order, 2026, along with the allowances applicable to them under their contracts with the government.

2. Salary determination for new contractual appointments

Those appointed or to be appointed to contractual positions after July 1 will receive the salary corresponding to the grade and step under the National Pay Scale 2026 that matched their basic salary immediately before retirement. Existing contracts, where applicable, must be amended accordingly.

From the date of joining, they will be entitled to increased salaries under paragraphs 1(3)(a), 1(3)(b), 1(3)(c), excluding annual increments, and 1(3)(j) of the Service (Pay and Allowances) Order, 2026, along with applicable allowances under their contracts with the government.

In special cases, the salary for a contractual position will be determined by the government or in accordance with an agreement reached between the two parties.

3. Pension will not be deducted from contractual salary

The prescribed gross pension, calculated before commutation or surrender, and any special additional pension will not be deducted from the salary fixed for contractual employment.

4. No increments or additional retirement benefits during contractual employment

No salary increments, gratuity or increased pension will be payable for service during the contractual appointment period.

5. Terms for people other than retired government employees

For contractual appointments involving people other than retired government employees, the terms and conditions concerning salaries, allowances and other benefits will be determined on a case-by-case basis, considering the merits of each case and through coordination between the Ministry of Public Administration and the Finance Division. Contracts will be executed accordingly.

6. Conflicting previous orders to be cancelled

Relevant provisions of all previous orders, memoranda and instructions that conflict with the new circular will be considered cancelled. Earlier memoranda consistent with the circular will remain in force.

7. Subsequent government orders will apply

Notwithstanding the provisions on salaries and allowances in the circular, any subsequent orders issued by the government from time to time will apply to salaries, allowances and other benefits payable under the contracts.

8. Previous circular cancelled, new rules effective from July 1

The new circular has been issued by cancelling the circular previously issued by the Finance Division under memorandum No. 07.00.0000.172.31.008.13-07, dated January 26, 2016. The new circular will be considered effective from July 1, 2026.