Additional Tk 4,641 Crore Allocated to Raise Salaries
Graphics: Agamir Somoy
Nearly 11 years ago, salaries of government employees were increased. Although annual increments continued, there has been no major salary revision since then. A decision was made to form a permanent pay commission to adjust salaries annually in line with inflation, but it has yet to be implemented.
Over the years, the issue has sparked significant unrest. Employees have staged protests, and some were even jailed during demonstrations at the secretariat. After a mass uprising, the government changed, and even interim authorities came and went. In its first budget, the new government has proposed an additional Tk 4,641 crore allocation for salaries and allowances of public employees.
The proposed budget for the 2026–27 fiscal year stands at Tk 938,000 crore. A total of Tk 89,380 crore has been allocated for salaries and allowances of government officials and employees, which is Tk 4,641 crore higher than the previous year’s revised budget.
Finance Minister Amir Khasru Mahmud Chowdhury presented the proposed budget of Tk 938,000 crore in Parliament on Thursday, marking one of the largest budgets in the country’s history.
The session was presided over by Speaker Hafiz Uddin Ahmed Bir Bikrom, in the presence of Prime Minister and Leader of the House Tarique Rahman.
The finance minister said that government employees have been receiving salaries under the same structure for nearly 11 years. Meanwhile, the cost of living has increased significantly due to inflation. A new pay structure for government employees will be implemented in phases from July 1.
According to analysis, the allocation for salaries and allowances of government officials and employees is 5.47% or Tk 4,641 crore higher than the revised budget of the current fiscal year. In the original budget of fiscal year 2025–26, Tk 84,114 crore was allocated for this sector, which later rose to Tk 84,739 crore in the revised budget.
In comparison, the proposed allocation for the next fiscal year is Tk 4,641 crore higher. In fiscal year 2024–25, actual expenditure in this sector was Tk 69,423 crore, meaning that within just two years, annual spending on public sector salaries and allowances has increased by nearly Tk 20,000 crore.
For fiscal year 2026–27, Tk 13,874 crore has been allocated for officers’ salaries, up from Tk 12,927 crore in the revised budget of the current fiscal year—an increase of Tk 947 crore. Employees’ salaries have been increased to Tk 30,671 crore from Tk 29,170 crore, an increase of Tk 1,501 crore.
The largest portion continues to be allowances, which have been increased to Tk 44,835 crore from Tk 42,642 crore, a rise of Tk 2,193 crore. Altogether, the total allocation for salaries, wages, and allowances stands at Tk 89,380 crore.
Economic analysts note that rising living costs, inflationary pressure, and continuous recruitment in government services are driving this annual increase. Analysis of the overall operational expenditure shows that the government’s total proposed recurrent spending is Tk 551,087 crore, of which around 16.2% will be spent on salaries and allowances of government officials and employees.
