The new pay scale retains the existing 20 grades, with the starting basic salary for Grade 20 set at Tk 20,000 and the fixed salary for Grade 1 at Tk 156,000.The new pay scale will be considered effective from July 1, 2026, although its implementation will be phased over two fiscal years.
Special Correspondent : The cabinet on Monday approved the country’s ninth national pay scale for government employees, setting the minimum basic salary at Tk 20,000 and the maximum at Tk 156,000.The approval was given at a cabinet meeting on Monday, according to meeting sources.
The new pay scale retains the existing 20 grades, with the starting basic salary for Grade 20 set at Tk 20,000 and the fixed salary for Grade 1 at Tk 156,000.The new pay scale will be considered effective from July 1, 2026, although its implementation will be phased over two fiscal years.
The cabinet also approved the Joint Services Instructions 2026 for the armed forces in line with the new pay structure.The revised pay structure was approved based on recommendations prepared by a committee of secretaries after reviewing reports submitted by the National Pay Commission 2025 and the Armed Forces Pay Committee 2025.
A secretary who attended the meeting said that the cabinet had approved the new pay scale and that the Cabinet Secretary would brief journalists on the details.The government considered its financial capacity, the overall economic situation, inflation, the cost of living, the living standards of government employees and the need for a balanced salary structure while finalising the new scale.
Under the National Pay Scale 2026, the minimum basic salary will increase by 142 per cent, while the fixed salary for the highest grade will rise by 100 per cent.The ratio between the minimum and maximum basic salaries has also been reduced to 1:1.78 from the existing 1:1.945 to ensure greater equity in the pay structure.
Pension to rise in stages
The government has decided to gradually introduce a ‘one grade, one pension’ system for military and civilian employees by 2030, in line with its election pledge.The system will be implemented gradually because of its substantial financial implications and the lack of necessary data on civilian employees who retired before 2019.
As an interim measure, the government has decided to increase the net pensions of existing pensioners at different rates.Those receiving a net monthly pension of up to Tk 9,000 will receive a 100 per cent increase. Those receiving Tk 9,001 to Tk 20,000 will get a 75 per cent increase, while pensioners receiving Tk 20,001 to Tk 30,000 will receive a 65 per cent increase.
The increase will be 60 per cent for those receiving Tk 30,001 to Tk 40,000 and 55 per cent for those receiving more than Tk 40,000.The government expects the arrangement to provide relatively larger increases to people who retired many years ago and currently receive lower net pensions.
Disability allowance introduced
For the first time, the new pay structure will introduce a monthly allowance for government employees who have children with special needs.Each eligible child will receive Tk 3,000 a month.
The coverage of the mobile allowance will also be expanded. Previously, only employees in Grade 5 were eligible for the allowance. Under the new pay scale, employees of all grades will receive it.
Implementation over two fiscal years
The government has decided to implement the new pay scale in stages rather than all at once, citing its financial implications and possible impact on inflation.The scale will be implemented gradually during the 2026-27 and 2027-28 fiscal years, with lower-income employees receiving priority, particularly those in Grades 10 to 20.
The revised basic salaries will be implemented in three phases between July 1, 2026 and July 1, 2027, while various allowances will come into effect simultaneously from January 1, 2028.
Pension increases will also be implemented in stages.
A separate committee has been formed for the judicial service. Its recommendations will be used to approve a separate Bangladesh Judicial Service pay scale, which will also be implemented in phases from July 1, 2026.The government expects the phased implementation of the new pay structure to help ease inflationary pressure on the economy.
