Cabinet may approve new pay scale tomorrow, gazette expected by Thursday
The government is preparing to roll out a long-awaited new pay scale for public servants, with the proposal likely to be placed before the Cabinet on Monday and a gazette notification potentially issued by Thursday if approved, according to officials familiar with the process.
A Finance Ministry official, speaking on condition of anonymity, said the necessary preparations have been completed.
“Everything has been finalised. We are now waiting for Cabinet approval,” the official told Daily Waadaa, adding that preparations are in place to issue the gazette quickly after approval.
The move could end an almost 11-year wait for a revision of the national pay structure amid rising inflation and living costs.
A 10-member committee headed by Cabinet Secretary Nasimul Gani was formed on April 21 to review the recommendations of the Ninth National Pay Commission and determine how a new salary structure could be implemented within the government’s financial capacity.
The committee includes the principal secretary to the prime minister, finance secretary, public administration secretary and law secretary, along with senior officials from relevant ministries.
The Ninth National Pay Commission recommended retaining the existing 20 salary grades while raising basic salaries by 100% to 140%.
Under its proposal, the minimum basic salary would rise from 8,250 taka to 20,000 taka, while the maximum would increase from 78,000 taka to 160,000 taka.
However, the committee headed by the cabinet secretary has recommended limiting the maximum increase in basic salaries to 100%, according to sources.
Two-phase rollout planned
The committee has proposed implementing the new pay structure in two phases to ease pressure on public finances.
Basic salaries would be revised from the current 2026-27 fiscal year, while adjustments to house rent, medical and other allowances would come into effect in the following fiscal year.
Although the government earlier announced that benefits under the new structure would take effect from July 1, 2026, the full package would therefore be introduced gradually.
Bangladesh currently has around 1.4 million government employees and 900,000 pensioners, costing the state approximately 1.31 lakh crore taka annually.
The Ninth Pay Commission estimated that fully implementing its proposed structure could require an additional 1.06 lakh crore taka.
The government has opted for phased implementation largely because of the significant fiscal burden.
For the 2026-27 fiscal year, the budget allocated 1.4 lakh crore taka to the public administration-net sector, compared with 86 thousand crore taka in the revised budget for the previous fiscal year — an increase of 545.72 billion taka.
Finance Division officials estimate that at least 44 thousand crore taka of the additional allocation could be used to partially implement the new salary structure for government employees, teachers covered by the Monthly Pay Order system and pensioners.
Under the existing Eighth National Pay Scale, the minimum basic salary is 8,250 taka and the maximum 78,000 taka.
Public servants have remained under the same pay structure for nearly 11 years, while inflation and living costs have risen substantially.
Finance Minister Amir Khasru Mahmud Chowdhury announced in his June 11 budget speech that the new pay structure would be introduced in phases with effect from July 1.
Cabinet approval on Monday would formally clear the way for implementation of the Ninth Pay Scale. The final salary rates, allowances and rollout schedule, however, will only be confirmed through the Cabinet decision and subsequent gazette notification.
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