The government has moved a significant step closer to partially implementing the long-awaited ninth national pay scale for public sector employees, with preparations underway to allocate nearly Tk 3.5 trillion in the 2026–27 fiscal budget.
According to sources within the Ministry of Finance, a draft budget framework has already been prepared and is awaiting final approval following discussions with the Prime Minister. The proposed reforms aim to address longstanding demands from public servants while balancing fiscal sustainability amid inflationary pressures and revenue constraints.
Phased Implementation Under Consideration
Authorities are currently evaluating two possible implementation models. The first proposes a three-phase rollout, while the second suggests incremental salary adjustments over the next two fiscal years.
Under the primary proposal, government employees could receive up to a 50% increase in basic pay in the upcoming fiscal year. The remaining adjustment would be completed in the following year. Allowances, including housing and other benefits, may be revised in a separate phase spread over two instalments in the third year.
A high-level committee, led by the Cabinet Secretary, has been formed to review the proposal in light of inflation trends, revenue collection performance, and overall macroeconomic stability.
Estimated Fiscal Impact
Preliminary government estimates suggest that full implementation of the ninth pay scale would require an additional Tk 1.06 trillion. Of this, approximately Tk 800 billion would be allocated to salary increases, while the remainder would cover pensions and employees under the government’s subsidised education system (MPO).
The upcoming national budget for 2026–27 is projected at around Tk 9.3 trillion, reflecting an 18% increase compared to the current fiscal year. Revenue collection is expected to reach approximately Tk 6.3 trillion.
Budget Overview
| Category |
Current FY (Revised) |
Proposed FY 2026–27 |
| Total Budget Size |
Tk 7.88 trillion |
Tk 9.30 trillion |
| Revenue Target |
— |
Tk 6.30 trillion |
| Salary & Allowances |
Tk 841.14 billion |
To increase significantly |
| Pension Allocation |
Tk 356.57 billion |
To rise further |
| Estimated Pay Scale Cost |
— |
Tk 3.5 trillion (partial provision) |
Fiscal Background and Previous Decisions
In the current fiscal year, allocations for salaries and allowances stand at Tk 841.14 billion, while pensions account for Tk 356.57 billion. Together, the government spends approximately Tk 1.31 trillion annually on its workforce and retired employees.
The ninth pay commission had initially recommended partial implementation within the current year, with an interim allocation of Tk 300 billion already earmarked. However, slower-than-expected revenue growth, combined with global energy price volatility linked to Middle Eastern tensions, led to a postponement of the rollout.
Proposed Salary Structure
The commission’s recommendations outline a revised structure comprising 20 grades. The minimum monthly salary is proposed to rise from Tk 8,250 to Tk 20,000, while the highest grade could increase from Tk 78,000 to Tk 160,000.
The last full revision of the national pay scale was implemented in 2015 under the eighth pay structure, which was introduced in phases, beginning with basic pay adjustments followed by allowances in the subsequent year.
As discussions continue, the government faces the challenge of balancing employee welfare with fiscal discipline, ensuring that any reform remains economically sustainable while addressing mounting expectations from public sector workers.
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