What we know about the new pay scale for govt employees

The interim government is set to roll out a new salary structure for public employees. It will be gazetted and implemented early next year, with allocations made in the revised budget of the current fiscal year (FY2025-26).

Infographics: TBS

New pay scale at a glance

• Allocations to be included in the revised budget of FY26 (revision begins in December)
• Implementation expected by March or April 2026
• National Pay Commission formed on 24 July 2025 to draft recommendations
• Ratio between highest and lowest salaries to remain between 8:1 and 10:1, even if the number of grades is reduced
• Allowances, including medical and education, to be increased; pensioners to get a larger medical allowance rise
• Special allowances proposed for university teachers, doctors, engineers, scientists, and researchers to address skill shortages
• Private sector may feel pressure as higher government salaries could impact industries with low investment; chambers and associations to be consulted
• Minimum wages in 45 sectors, including RMG, to be aligned with national pay scale hikes
• Armed forces and judiciary to continue with separate pay structures, partially aligned with the national scale
• Interim government already provided a 10% special benefit in FY26 budget ahead of the new scale
• The National Pay Commission 2025 will collect public feedback on the new government pay structure through four online questionnaires