Bangladesh Proposes Up To 100% Rise In Basic Pay

The proposed ninth national pay scale for government employees recommends increases of up to 100 per cent in basic salaries across the existing 20-grade structure, marking a significant potential revision to the country’s public-sector remuneration system.

The proposed structure is expected to be implemented in two stages. Under the plan, the revised basic salaries would take effect in the first year, while house rent and other allowances would be introduced in the second year. The phased approach appears designed to spread the financial impact of the new pay structure over more than one financial year.

The process has moved closer to implementation after all members of the secretary-level committee signed the final report on the ninth pay scale. Their endorsement represents another key administrative step, although the recommendations will still require the government’s final consideration before they can become effective.

Details of the proposed pay structure were highlighted in an e-book titled 180 Days of the People’s Government, published to mark 180 days of the government’s tenure. The publication described the ninth pay scale as a major development for government employees and outlined the steps taken towards introducing the revised remuneration structure.

The financial implications are substantial. For the 2026-27 financial year, Tk89,836 crore has been allocated for salaries and allowances of government officials and employees. When pensions and gratuities are included, the total allocation for the sector rises to Tk1,41,434 crore. Any significant revision to salaries and allowances would therefore have implications for government expenditure and future budgetary planning.

The latest proposal follows the formation of the Ninth National Pay Commission on 27 July 2025, nearly 12 years after the previous pay commission. The 23-member commission was headed by former finance secretary Zakir Ahmed Khan and submitted its report to then Chief Adviser Professor Muhammad Yunus on 21 January this year.

The commission had recommended retaining the existing 20 grades while proposing increases of between 100 and 140 per cent in salaries and allowances. Under its recommendations, the minimum basic salary was proposed to rise from Tk8,250 to Tk20,000, while the maximum basic salary was proposed to increase from Tk78,000 to Tk1,60,000.

A 10-member committee was subsequently formed on 21 April to prepare recommendations on how the proposed pay structure should be implemented. Cabinet Secretary Nasimul Ghani was appointed as its chairman. The committee also includes the principal secretary to the prime minister, the finance secretary, public administration secretary, law secretary, defence secretary, secondary and higher education secretary, health services secretary, the principal staff officer of the Armed Forces Division and the comptroller general of accounts.

The government has been under pressure to review public-sector salaries after a prolonged period under the existing pay structure. During the presentation of the national budget in Parliament on 11 June, the finance minister said government employees had been receiving salaries and allowances under the same structure for nearly 11 years. Over that period, inflation has substantially increased household expenditure, weakening the purchasing power of fixed salaries.

The proposed revision is therefore being viewed against a broader economic backdrop. For public employees, the central issue is not simply the size of the nominal salary increase but how far the revised pay will restore purchasing power after years of rising living costs. For the government, meanwhile, the challenge will be balancing employee expectations with fiscal sustainability and the wider demands placed on public finances.

The budget documents for the 2026-27 financial year also identify Tk89,836 crore for government salaries and allowances under the broader analysis of operating and development expenditure.

If implemented, the ninth pay scale would bring an end to a long period of anticipation among government employees. The final increase in basic salaries, the precise implementation timetable and the structure of house rent and other allowances, however, will depend on the government’s final decisions.:::