Civil Service Salaries to Double Under New Proposal

In a landmark move aimed at insulating public sector employees from the sharp rise in the cost of living, the National Pay Commission is set to submit a transformative report to the Interim Government. The centrepiece of this proposal is a near-doubling of the basic salary for approximately 1.5 million civil servants, marking the most significant fiscal adjustment in the public sector since 2015.

Substantial Hikes in Basic Pay

Under the leadership of the commission’s chairman and former Finance Secretary, Zakir Ahmed Khan, the report proposes that the minimum basic salary for the lowest tier (Grade 20) be raised from BDT 8,250 to BDT 20,000. At the other end of the spectrum, the basic monthly pay for top-tier officials, including the Cabinet Secretary and the Principal Secretary to the Prime Minister, is slated to rise from BDT 86,000 to BDT 160,000.

While the 20-grade structure remains intact, the gross remuneration for employees is expected to surge when allowances are factored in. For instance, a Grade 20 employee stationed in Dhaka—benefiting from higher house rent and utility subsidies—could see a total monthly package of approximately BDT 42,000.

Comparative Analysis: 2015 vs 2026 Pay Structure

Enhanced Benefits and Pension Reform

The commission has not limited its recommendations to basic salaries alone. A notable shift includes the Boishakhi Allowance (Bengali New Year bonus), which is proposed to increase from 20% to 50% of the basic pay. Furthermore, the eligibility for transport allowances is being widened; previously restricted to Grades 11 through 20, it is now recommended to include officials up to Grade 10.

Crucially, the report addresses the welfare of the retired workforce. Pensioners, particularly those in the lower income brackets, are set for a major windfall:

100% Increase for those receiving less than BDT 20,000 per month.

75% Increase for those in the BDT 20,000 to BDT 40,000 range.

55% Increase for those receiving over BDT 40,000.

Institutional Context and Fiscal Realities

Formed on 24 July 2024, the commission was mandated to deliver its findings within six months. Zakir Ahmed Khan expressed high confidence in the proposal, telling Samakal, “We are submitting a very positive report. It contains excellent propositions that will significantly benefit the workforce.”

However, the implementation of such an expansive pay scale poses a formidable challenge for the national treasury. Economists suggest that while the hike is necessary to combat inflation, the Interim Government must balance these benefits against the broader fiscal deficit and the long-term sustainability of the national budget.