New Pay Structure on the Way for Government Employees

The government will begin implementing a new salary structure for public officials and employees from July 1. It is following recommendations made by a committee headed by Cabinet Secretary Nasimul Ghani.

According to the committee’s proposal, the new pay structure will be implemented in phases over three fiscal years. In the first and second fiscal years, 50 percent of the revised basic salary will be introduced each year. In the third phase, allowances and other financial benefits will be added and aligned with the basic pay. Prime Minister Tarique Rahman has given in-principle approval to the proposal.

Under the government’s plan, 50 percent of the increased basic salary under the new structure will take effect from the upcoming fiscal year. In the second phase, the remaining 50 percent of the basic salary will be implemented. In the final phase, allowances and other financial benefits will be incorporated.

Two meetings were held in the Secretariat on Wednesday and Thursday regarding the 2026-27 national budget with Prime Minister Tarique Rahman. Relevant sources said discussions in those meetings also included the implementation of the new pay structure.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury told the media that the new pay structure will begin implementation from the next fiscal year, starting July 1. He added that work is underway to determine the most effective way to implement it.

Sources from the Finance Division and Cabinet Division said the full implementation of the new pay scale will require an additional approximately Tk 1.06 lakh crore from the government. The phased approach has been adopted to manage this financial burden.

At present, the government spends about Tk 1.31 lakh crore annually on salaries and allowances for around 1.4 million government officials and employees, as well as 900,000 pensioners.