Can the new pay scale stay ahead of inflation?

After a decade-long wait, the new national pay scale for government employees is finally underway. 

Finance Adviser Dr Salehuddin Ahmed told TBS on 29 September that the new pay scale will be gazetted and implemented during the tenure of the current interim government.

The government formed a Pay Commission on 24 July. The commission is expected to submit its recommendations to the government by December.

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. Currently, they are paid according to the 2015 pay scale.

However, it has failed to keep up with inflation, the high cost of living in cities, and the changing needs of today's digital workforce. At the same time, the gap between public and private sector salaries has grown wider. 

Experts say the new pay scale should not simply raise salaries — it should also bring fairness, dignity, and meaningful reform to the system.

Sadik Hasan, professor of Public Administration at the University of Dhaka, noted that one major problem with the country's salary structure is that whenever a new pay scale is announced, it immediately affects the market.

"No matter how much salaries are increased, prices of essential goods tend to rise as well. The government must keep a close watch on market prices. Also, instead of increasing salaries by a lump sum amount, the raise should be based on the inflation rate and adjusted accordingly."

Tariq Monzur, professor in the Department of Bangla at Dhaka University, agrees that the benefits of increased salaries and allowances are felt only for a short period. Therefore, it is more important to keep commodity prices stable and inflation under control.

In his opinion, the salary structure should be revised regularly — ideally every five years.

However, he argues that the current system, with so many salary grades, is unnecessary, as it widens the income gap. 

"I think teachers do not need a separate pay structure. Instead, I suggest that the pay scale could be designed in a way that allows salaries and allowances for employees across all sectors — public, private, and even workers in the garment industry or other fields — to be determined within a unified framework," he said.

Labour economist Mohammad Nazmul Hossain Avi warns that the government must proceed with caution.

"In the 2015 pay scale, the government made a mistake by increasing the salaries of 6th and 9th grades so much that they no longer aligned with entry-level positions in the private sector. As a result, demand shifted towards government jobs. In one sense, it was positive because more talented individuals were drawn to public service, but overall, it was harmful to the job market. This mistake must not be repeated," he said.

The Pay 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.

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. 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 government must ensure that there are enough jobs in the private sector so that it doesn't dry up. Secondly, salary structures across all private sector industries should be set under the National Wage Policy and the Minimum Wage Policy, in alignment with the new pay scale. This is essential to maintain a balance of demand in the overall job market," Hossain noted.

The government has 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.

"And to create this balance, changes must be made not only in salaries but also in the work culture. The government must set examples of people losing public sector jobs for valid reasons, as one major reason behind the overwhelming attraction to government jobs is the extreme job security they offer. There should be a system of performance evaluation in both sectors," he added.

The Pay Commission is also expected to recommend scrapping the selection grade and timescale while simplifying the promotion process.

State-owned banks, power companies, the armed forces, and the judiciary maintain separate pay structures that differ in salaries and allowances from the national scale. 

"No matter how much salaries are increased, prices of essential goods tend to rise as well. The government must keep a close watch on market prices. Also, instead of increasing salaries by a lump sum amount, the raise should be based on the inflation rate and adjusted accordingly."

Sadik Hasan, Professor, Public Administration, University of Dhaka

A member of the Pay Commission, speaking on condition of anonymity, said that while these sectors will retain their distinct frameworks, the commission will recommend aligning them more closely with the national pay scale to ensure greater consistency and fairness.

The commission has also decided to propose special allowances in the new pay structure for university teachers, doctors, engineers, scientists, and researchers as incentives — benefits that will not extend to other civil or military personnel.

According to the Pay Commission, interest in careers such as medicine, engineering, and research has declined in recent years. Many students pursue these disciplines, but later shift towards administrative or managerial roles. As a result, these specialised professions are suffering from a shortage of skilled professionals, leaving Bangladesh at risk of falling behind in innovation and technological advancement.

To address this, the commission will recommend introducing targeted allowances for doctors, engineers, researchers, scientists, and university faculty engaged in active research.

If implemented wisely, the new national pay scale could become a turning point for Bangladesh's public service — restoring fairness, motivation and professionalism across sectors. 

But real reform must go beyond pay raises. It has to tackle inefficiencies, strengthen accountability, and build a culture where performance matters as much as position. The challenge now lies not in announcing a new pay scale, but in making it sustainable. 

Without fiscal discipline and coordination with the private sector, a rushed revision could distort the balance between the public and private job market even further.