SC upholds higher grade benefits for govt employees under new pay scale

The Appellate Division of the Supreme Court today (5 March) has upheld a verdict that government employees who previously received time-scale or selection-grade promotions are eligible for higher grades under the new pay scale.

A four-member bench, led by the Chief Justice, delivered the final decision by dismissing a review petition filed by the Ministry of Finance.

The original case, decided on 30 April 2025, opened the way for nearly 1.5 million employees of government and autonomous bodies to receive the benefits. The Finance Ministry later sought a review of the ruling.

The petition was argued by Acting Attorney General Mohammad Arshadur Rauf, while the petitioners were represented by Barrister Ibrahim Khalil.

Earlier, on 21 September 2017, a Finance Ministry circular had said that employees with two or more time-scale or selection-grade promotions would not receive additional higher grades under the new pay scale, while those with one would.

The circular also clarified that financial benefits would not be effective before 15 December 2015. Employees challenged the circular's validity through a writ petition, which was ultimately resolved in the Appellate Division.

Under the new pay scale, employees automatically receive higher grades if they remain in the same position without promotion: the first higher grade in the 11th year and the second in the 17th year of service. While the pay scale included the provision, implementation procedures were later clarified by the Finance Ministry through a circular.

Under the new pay scale, employees who remain in the same position without promotion receive the first higher grade in the 11th year and the second in the 17th year of service.

Although the provision existed in the pay scale, the Ministry of Finance later clarified its implementation through a circular.