The Bangladesh government is set to finalise the new salary structure for civil servants this Thursday, with implementation scheduled to commence on 1 July. Prime Minister Tarique Rahman will chair the meeting to reach a final decision.
This follows a consensus reached during high-level meetings last Wednesday and Thursday involving Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Bangladesh Bank Governor Md Mostaqur Rahman, Finance Secretary Md Khairuzzaman Mozumder, and National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan, who all agreed on increasing salaries from the upcoming fiscal year.
Senior officials from the Secretariat and the government have confirmed that the upcoming session was convened specifically to approve all relevant decisions.
Phased implementation, housing allowances
A committee led by Cabinet Secretary Nasimul Gani has recommended that the new salary structure be implemented in three phases over three fiscal years.
Under this proposal, which has already received in-principle consent from Prime Minister Tarique Rahman, the basic salary will increase by 50 per cent during each of the first two fiscal years.
House rent and other allowances are expected to be added in the third fiscal year. Regarding house rent specifically, the committee suggested relatively lower increase rates for high-salaried officials in grades one to 10, while recommending higher rates for employees in grades 11 to 20.
The finance minister noted that although the economy faces challenges and a poor revenue-to-GDP ratio necessitates budgetary cuts and adjustments, the government remains committed to addressing the new salary requirements.
Pension hikes and medical benefits
Significant adjustments have also been proposed for pensioners, with some receiving increases of over 100 per cent.
The committee suggested that pensioners receiving less than Tk 20,000 per month may see a 100 per cent rise, while those receiving between Tk 20,000 and Tk 40,000 could see a 75 per cent increase.
For those with monthly pensions exceeding Tk40,000, a hike of 55 per cent has been proposed. In terms of medical allowances, the committee recommended Tk10,000 for pensioners aged 75 and over, Tk 8,000 for those aged 55 to 74, and Tk5,000 for those under 55.
These developments follow discussions that began during the interim government’s tenure. That administration deferred the final decision to the subsequent elected government due to an estimated expenditure exceeding Tk1.3 trillion.
Following the government’s formation on 12 February, the current administration proceeded with the salary hike plans, establishing a 10-member committee led by the Cabinet Secretary on 23 April.
