Pay scale gazette: 30% raise now, 35% more in January

The government has published the official gazette of pay scale, which will raise basic pay by 30 percent and by another 35 percent in January 2027 as part of a four-phase rollout over two years.

Ministry of Finance published the gazette of Public Service (Amendment) Bill, 2026 on Tuesday. To increase the salaries of nearly 24 lakh government employees, the ninth pay scale has been declared after 11 years, with salaries rising up to a maximum of 142 percent.

According to the gazette, the salary hike will not take place all at once but will be implemented in four phases over the next two fiscal years.

Under the new structure, 30 percent of the basic salary will become effective from 1 July. This means that government employees will receive an increased amount at 40 percent of the salary hike starting from July 2025.

The additional money for July and August will be disbursed as arrears. Another 35 percent will become effective from 1 January 2027. The remaining portion of the basic salary will take effect in July of the subsequent fiscal year, after which various allowances will be implemented on January of that same fiscal year.

With the implementation of the new salary structure, the dearness allowance will be abolished. For those who have already received the dearness allowance for July and August, it will be adjusted against their increased salary.

Although the basic salary in the first grade has increased to Tk 1,56,000, the gazette said the salary of the cabinet secretary, principal secretary, and officials of equivalent status will be Tk 1,70,000.

The salary of senior secretaries and officials of equivalent rank will be Tk 1,60,000. The gazette noted that individuals who retired prior to 1 July will not be eligible to benefit from the salary determination under the new structure.

Regarding pensions, the gazette added that the net pension for pensioners aged above 65 years will increase by 50 percent, while for others, the increase will be 40 percent.