Cabinet approves 9th pay scale: Basic salaries to rise in 3 phases, allowances from Jan 2028

An image of approved 9th pay scale. Photo: Collected

Highlights

• Cabinet approves 9th pay scale with three-phase salary increases
• Grade 20 salary rises to Tk20,000; Grade 1 to Tk1,56,000
• Allowances for all employees will take effect from January 2028
• Lower-paid pensioners will receive significantly higher percentage increases
• Mobile allowance expanded to government employees across all grades
• Around 33 lakh people will benefit from the new scale

The cabinet has approved the National Pay Scale 2026, with basic salaries of government employees set to be implemented in three phases between 1 July 2026 and 1 July 2027, while various allowances will take effect simultaneously from 1 January 2028.

The weekly cabinet meeting, with Prime Minister Tarique Rahman in the chair, began at the Secretariat around 5:30pm, according to a press release issued by the Prime Minister's Office.

The new pay scale will retain the existing 20 grades for government employees. The minimum starting basic salary for Grade 20 has been set at Tk20,000, while the maximum prescribed salary for Grade 1 will be Tk1,56,000.

The government said the new structure was approved after considering its financial capacity, the overall economic situation, inflation, the cost of living and the need for a balanced and rational pay structure.

Under the new scale, the ratio between the salaries of the lowest and highest grades will be reduced from the existing 1:1.945 to 1:1.78.

As a result, the starting basic salary for the lowest grade will increase by 142%, while the prescribed salary for the highest grade will increase by 100%.

Basic pay to be implemented in three phases

Although the National Pay Scale 2026 will be effective from 1 July 2026, the government has decided against implementing the entire pay structure at once because of its financial implications and potential impact on overall inflation.

The basic salaries will be implemented in three phases between 1 July 2026 and 1 July 2027 across the 2026–27 and 2027–28 fiscal years.

Employees in Grades 10 to 20 will be given priority in implementation, considering their relatively lower incomes.

The government has also decided to introduce all allowances simultaneously from 1 January 2028.

The same phased approach will apply to increases in net pensions.

Lower pensioners to get higher increases

The government has postponed full implementation of the "One Rank One Pension" (OROP) system until 2030.

According to the Finance Ministry, full implementation at present would involve substantial financial costs, while the government lacks data on civilian employees who retired before 2019.

As an interim measure, the government has approved slab-based increases in net pensions, with lower-paid pensioners receiving higher percentage increases.

Under the new formula, net pensions of Tk9,000 or less will increase by 100%, while those between Tk9,001 and Tk20,000 will rise by 75%. Pensions ranging from Tk20,001 to Tk30,000 will increase by 65%, those between Tk30,001 and Tk40,000 by 60%, and pensions of Tk40,001 or more by 55%.

The government said the measure will particularly benefit pensioners who retired many years ago and currently receive relatively low net pensions.

Mobile allowance expanded to all grades

The government has also decided to expand mobile allowance coverage to employees across all 20 grades.

Previously, the allowance was available only to employees up to Grade 5. The expansion takes into account the growing use of internet and digital communication in government offices.

Tk3,000 allowance for children with disabilities

For the first time, the government will introduce a monthly allowance for government employees with children with special needs.

An employee will receive Tk3,000 per month for each child with special needs.

Around 33 lakh people to benefit

The new pay scale is expected to benefit around 24 lakh military and civilian employees, as well as more than 9 lakh retired employees and other eligible beneficiaries.

The government estimates that implementation will require an additional annual expenditure of around Tk1,05,580 crore. The required funds have been earmarked in the budgets for the relevant fiscal years under the Medium-Term Budget Framework.

Meanwhile, a separate committee has been formed for the judicial service. Based on its recommendations, a separate Bangladesh Judicial Service pay scale will be approved and implemented in phases from 1 July 2026 in line with the National Pay Scale 2026.

The Finance Division will issue the necessary gazettes, orders and instructions to implement the new pay scale, detailing the procedures for salary fixation, allowances, pensions and other post-retirement benefits.

The government said phased implementation would help ease pressure on inflation while improving the financial security and motivation of government employees and contributing to a more efficient and people-oriented public administration.