Govt employees to get paid under new pay scale from early next year
The interim govt will implement the new pay scale, finance adviser says
Highlights
- New pay scale to be implemented under interim govt
- Funds to come from revised budget
- Commission to submit report by December
- Special allowances for key professions
- 24 lakh public employees to be covered
The new salary structure for government employees will be gazetted and implemented during the tenure of the current interim government, without waiting for the next administration. Funds for this will be allocated in the revised budget of the current fiscal year.
Bite-Sized: What changes are coming in the new pay structure for government employees?
"The new pay scale will be implemented during the term of this government. You will see how it will be made effective within this tenure," Finance Adviser Dr Salehuddin Ahmed told The Business Standard on Monday (29 September).
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Even if the new pay scale comes into effect from March or April, allocations must be made in the current fiscal year's budget, he said yesterday while speaking to reporters at his finance ministry office. The budget revision will begin in December, where provisions for implementing the new pay scale will be included, he added.
To determine the new salary structure for government employees, the government formed a Pay Commission on 24 July. Its chairman, former finance secretary Zakir Ahmed Khan, recently said the commission would submit its recommendations to the government by December.
A member of the Pay Commission, requesting anonymity, said no final decision has yet been made about the highest and lowest grades in the new pay scale, nor about the average rate of increase compared to the existing one.
Currently, the ratio between the highest post (Grade-1) and the lowest post (Grade-20) is about 10:1. In the new scale, this will remain between 8:1 and 10:1.
Reviewing pay structures in neighbouring India and other countries, the commission noted that such ratios are common. Even if the number of grades is reduced from the existing 20, the commission will recommend maintaining a similar ratio between the highest and lowest salaries.
The member added that the commission has so far decided to increase certain allowances, including medical allowance. At present, an employee receives Tk1,500 monthly medical allowance at the start of service and the same amount after retirement. The commission will recommend raising this allowance, with a larger increase for pensioners.
It will also propose increasing the education allowance for employees' children.
In 2015, following the recommendations of the commission led by Dr Farashuddin, the then government abolished selection grade and timescale, replacing them with automatic promotion after 10 years. The current commission is also expected to recommend scrapping selection grade and timescale while making the promotion process simpler.
At present, 14 lakh government employees receive salaries and benefits under the national pay scale. In addition, state-owned banks, power companies, the armed forces, and judges follow separate pay structures, which differ in salary and allowances from the national scale, a commission member said.
He added that such sectors will continue to have separate pay structures, but the commission will recommend aligning them more closely with the national pay scale.
The commission also believes that a new salary structure for government employees may put pressure on the private sector, which already faces poor investment conditions. Therefore, the commission will seek input from chambers and associations through consultations in October.
The government has also set minimum wage structures for workers in 45 sectors, including the ready-made garments sector. The commission will recommend ensuring that wages in these sectors are adjusted in line with increases in the national pay scale.
In addition, the commission has decided to recommend special allowances in the new pay scale for university teachers, doctors, engineers, scientists, and researchers, as incentives. These will not apply to others in civil or military service.
The anonymous member said, "Interest in becoming doctors, engineers, scientists, and researchers has declined. Many study medicine or engineering but prefer administrative or other careers. As a result, these specialised professions are facing shortages of skills and expertise, and Bangladesh is falling behind in innovation.
"The commission unanimously agreed to propose special allowances for doctors, engineers, researchers, scientists, and university teachers engaged in research."
He added that the armed forces and judiciary have separate pay structures, although aligned with the national scale, with additional allowances for the military. Similarly, the special allowances aim to attract talent into medicine, engineering, research, and innovation.
Currently, government employees are paid according to the 2015 pay scale. There are about 15 lakh civil servants, and the total number rises to nearly 24 lakh when including members of the armed forces, staff of banks and financial institutions, and teachers in public education.
Since the interim government took office, discussion on allowances began again in November 2024. A committee started work in January 2025 to introduce a new dearness allowance, but following criticism, the plan was withdrawn. Later, the finance ministry provided a 10% special benefit to government employees in the current fiscal year's budget.
In FY2025–26, a total of Tk84,684 crore has been allocated for government salaries and allowances, up from Tk82,977 crore in the previous year.
