The government on Monday approved the National Pay Scale 2026, raising the basic salaries of government employees, increasing net pensions for lower-income retirees and introducing new allowances, including a disability allowance for children with special needs.
The new pay scale was approved at a cabinet meeting chaired by Prime Minister Tarique Rahman.
Under the revised scale, the minimum basic salary will rise to 20,000 taka for Grade 20 employees, while the maximum basic salary will increase to 156,000 taka for Grade 1 employees.
The basic salary for employees in the lowest grade will increase by 142 percent, while that for the highest grade will rise by 100 percent.
According to a Finance Ministry press release, the ratio between the salaries of the lowest and highest grades will narrow to 1:1.78 from the existing 1:1.945, with the aim of creating a more equitable pay structure.
The new pay scale will also increase net pensions on a slab basis.
Pensioners receiving a monthly net pension of 9,000 taka or less will receive a 100 percent increase. Those receiving 9,001 to 20,000 taka will get a 75 percent increase, while those receiving 20,001 to 30,000 taka will receive a 65 percent increase.
The increase will be 60 percent for pensioners receiving 30,001 to 40,000 taka and 55 percent for those receiving 40,001 taka or more.
The government said the measure would particularly benefit pensioners who retired many years ago and currently receive relatively low net pensions.
The government has also decided to introduce the One Rank One Pension (OROP) system for both military and civilian personnel in phases by 2030, in line with its election manifesto.
The Finance Ministry said immediate implementation of OROP would impose a substantial financial burden, while information on civilian employees who retired before 2019 is unavailable.
As an interim measure, the government has opted to substantially increase net pensions on a slab basis, taking into account pensioners’ living standards and financial security in old age.
For the first time, the government has decided to introduce a monthly disability allowance of 3,000 taka for each child with special needs of a government employee.
The mobile phone allowance has also been expanded.
Previously, the allowance was available only to employees in Grade 5. Under the new pay scale, employees across all grades will be entitled to the benefit.
The National Pay Scale 2026 will be implemented in phases from July 1, 2026, rather than taking effect in full immediately.
Considering the financial implications of the revised pay structure and its potential impact on inflation, the government will implement it over fiscal years 2026-27 and 2027-28.
Employees in Grades 10 to 20 will receive priority, given their comparatively lower incomes.
The revised basic salaries will be implemented in three phases between July 1, 2026 and July 1, 2027, while allowances will take effect simultaneously from January 1, 2028.
The increases in net pensions will also be implemented in phases.
The government said the phased implementation would help contain inflationary pressure at the national level.