The government expects the newly approved Ninth National Pay Scale, which effectively doubles public sector salaries, to enhance financial security, boost employee morale, and foster a more efficient, dynamic, and people-oriented public administration.
In a statement issued following a Cabinet meeting chaired by the prime minister on Monday, the government noted that despite ongoing fiscal pressures, it decided to increase basic salaries for state employees by a minimum of 100 per cent and a maximum of 142 per cent.
Under the revised framework, the minimum basic salary for Grade 20 employees rises from Tk8,250 to Tk20,000, while the maximum fixed basic salary for Grade 1 employees increases from Tk78,000 to Tk1,56,000.
This latest adjustment marks a more than sixfold increase in public sector compensation across three major pay reforms since 2009.
The 2009 pay scale raised minimum salaries by 70 per cent, while the Eighth Pay Scale in 2015 introduced an average increase of nearly 95 per cent. Consequently, an employee whose basic monthly salary stood at Tk5,000 prior to 2009 will now receive Tk33,000.
Alongside the main framework, the government approved the Joint Services Instructions 2026 to align military pay with the new structure.
A dedicated committee has also been constituted for the judicial sector, with the Bangladesh Judicial Service Pay Scale set to be approved and implemented incrementally from 1 July 2026, mirroring the national rollout.
Speaking at a press conference following a morning briefing between the prime minister and finance ministry officials, Cabinet Secretary Nasimul Ghani highlighted key structural additions to the pay package.
For the first time, a monthly allowance of Tk3,000 will be introduced for public employees raising children with special needs.
Additionally, in recognition of rising digital communication expenses, eligibility for mobile allowances, previously restricted to Grade 5 officers and above, has been extended to employees of all grades.
Addressing concerns over raising salaries during an economic crunch, Ghani explained that while pay scales are typically revised every five years, 12 years had elapsed since the last major restructuring.
He noted that the government faced severe post-transition economic headwinds and energy constraints, but aimed to strike a balance to restore declining living standards for civil servants.
The Finance Ministry estimates that the new scale will benefit 2.4 million active military and civilian personnel, alongside more than 900,000 retirees and dependents, incurring an additional annual expenditure of Tk105,580 crore.
To mitigate immediate fiscal pressures and manage inflationary risks, net pensions will also be increased gradually on a sliding scale between 55 per cent and 100 per cent.
Retirees currently receiving a net monthly pension of Tk9,000 or less will see a 100 per cent increase, while those earning between Tk9,001 and Tk20,000 will receive a 75 per cent rise.
Tiers for higher pensions range from 65 per cent for payouts up to Tk30,000, to 60 per cent for amounts up to Tk40,000, and 55 per cent for pensions exceeding Tk40,000, ensuring long-retired staff with lower base payouts receive the largest relative boost.
The government reconfirmed its election manifesto pledge to implement a “One Rank One Pension” (OROP) model across both civilian and military sectors.
However, citing substantial fiscal outlays and incomplete service records for civilian staff who retired before 2019, authorities plan to phase in OROP progressively by 2030.
Detailed gazette notifications regarding salary fixation, allowances, and post-retirement benefits will be issued shortly by the Finance Division.
The rollout follows initial groundwork by a 23-member Ninth National Pay Commission formed under the interim government, whose recommendations were subsequently reviewed by a 10-member committee headed by the cabinet secretary.
Finance Minister Amir Khosru Mahmud Chowdhury had previously announced during his budget speech on 11 June that the new pay structure would take effect from 1 July, supported by an operational allocation of Tk89,836 crore in the 2026–27 budget.
