Budget FY27: Govt to roll out new pay structure for public servants from 1 July
The proposed budget for FY2026-27 allocates Tk89,380 crore for salaries and allowances
The government has announced the implementation of a new pay structure for public servants from 1 July.
Finance Adviser Amir Khosru Mahmud Chowdhury made the announcement during his maiden national budget speech for FY2026-27 in parliament this afternoon (11 June). The proposed budget will have a total outlay of Tk9.38 lakh crore, making it the largest national budget in Bangladesh's history.
The finance minister said, "Government employees have been receiving salaries and allowances under the same pay structure for nearly 11 years. Meanwhile, the cost of living has risen significantly due to inflation. We are announcing the implementation of a new pay structure for government employees, including salaries and allowances, from 1 July 2026."
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Despite the planned introduction of a new pay structure, no additional allocation has been earmarked in the budget specifically for salaries and allowances.
The proposed budget for FY2026-27 allocates Tk89,380 crore for salaries and allowances. Of this amount, Tk13,874 crore has been allocated for the salaries of cadre officers, Tk30,671 crore for employees, and Tk44,835 crore for allowances for officers and employees.
In comparison, the original allocation for salaries and allowances in the current fiscal year's budget was Tk84,114 crore, which was later revised to Tk84,739 crore.
Finance ministry officials said the government plans to implement the new pay structure partially from the beginning of the next fiscal year, potentially by introducing half of the proposed basic salary increase.
However, the recommendations made by the pay commission formed by the interim government are unlikely to be implemented in full. The government has formed a committee of secretaries to review the commission's report, although the committee has yet to submit its recommendations.
Officials said the committee may revise the proposed structure and recommend a lower rate of salary increase than originally suggested.
They added that if the government decides to implement the new pay structure from July, funding will not be a major constraint. The required expenditure could be met through block allocations and contingency funds already included in the budget.
According to finance ministry officials, around Tk37,000 crore has been set aside under various block allocations, which could be utilised to support the implementation of the revised pay structure.
