Cabinet approves 2026 payscale, sets basic salaries from Tk 20,000 to Tk 156,000

The government has approved the Ninth National Pay Scale, raising basic salaries by 142 percent at the lowest grade and 100 percent at the highest.

Under the new structure, the basic salary for Grade 20 rises from Tk 8,250 to Tk 20,000.

For Grade 9, the basic salary doubles from Tk 22,000 to Tk 44,000. This is the grade assigned to first-class gazetted officers who enter government service through the Bangladesh Civil Service (BCS).

At the top end, the basic salary for Grade 1 rises from Tk 78,000 (fixed) to Tk 156,000. 

Officials holding positions equivalent to secretary are placed in this grade.

Alongside the basic salary increases, the government has also approved higher house-rent allowances and other benefits and financial entitlements.

The long-awaited National Pay Scale 2026 was approved at Monday’s cabinet meeting after years of discussion, the finance ministry said in a notification.

The government has decided to implement the new pay structure in three phases from Jul 1, with Grades 20 through 10 to receive priority during implementation.

A separate pay structure for the armed forces has also been approved in line with the new payscale. It, too, will take effect from Jul 1.

The new pay structure was approved during a meeting at the Secretariat, led by Prime Minister Tarique Rahman.

Financial Constraints Shape New Payscale

Amid funding constraints, the Ninth National Pay Commission’s proposal, formed under the interim government, has won approval from the BNP government with minor changes.

The commission was formed 12 years after the Eighth Pay Commission in 2013 and submitted its report to interim government’s chief advisor Muhammad Yunus on Jan 21 this year.

The finance ministry said the new structure will be implemented in three phases from Jul 1 of the 2026-27 fiscal year through the 2027-28 fiscal year, citing its financial implications and potential impact on overall inflation.

Employees in grades 10 to 20 will be prioritised because of their lower incomes.

“Under National Pay Scale 2026, basic salaries will be implemented in three phases between Jul 1, 2026 and Jul 1, 2027, while allowances will take effect simultaneously from Jan 1, 2028.”

The commission had recommended raising the minimum basic salary from Tk 8,250 to Tk 20,000 and the maximum from Tk 78,000 to Tk 160,000, shortly before the parliamentary election.

The interim government had pledged funds for implementation, while finance advisor Salehuddin Ahmed said a committee would scrutinise the recommendations.

After taking office, the BNP government delayed implementation amid funding constraints, higher costs for fuel and essentials due to the West Asian conflict, and questions from the International Monetary Fund over financing the new structure.

The government ultimately approved the payscale six months after taking office.

What the New Scale Offers

The gap between the minimum and maximum basic salaries has narrowed to a 1:7.8 ratio from 1:9.076.

• Grade 1: Tk 78,000 → Tk 156,000
• Grade 2: Tk 66,000 → Tk 132,000
• Grade 3: Tk 56,500 → Tk 113,000
• Grade 4: Tk 50,000 → Tk 100,000
• Grade 5: Tk 43,000 → Tk 86,000
• Grade 6: Tk 35,500 → Tk 71,000
• Grade 7: Tk 29,000 → Tk 58,000
• Grade 8: Tk 23,000 → Tk 46,000
• Grade 9: Tk 22,000 → Tk 44,000
• Grade 10: Tk 16,000 → Tk 32,000
• Grade 11: Tk 12,500 → Tk 25,000
• Grade 12: Tk 11,300 → Tk 24,300
• Grade 13: Tk 11,000 → Tk 24,000
• Grade 14: Tk 10,200 → Tk 23,500
• Grade 15: Tk 9,700 → Tk 22,800
• Grade 16: Tk 9,300 → Tk 21,900
• Grade 17: Tk 9,000 → Tk 21,400
• Grade 18: Tk 8,800 → Tk 21,000
• Grade 19: Tk 8,500 → Tk 20,500
• Grade 20: Tk 8,250 → Tk 20,000

Pension, Allowances

The government will also substantially increase net pensions, with increases ranging from 55 percent to 100 percent depending on pension levels.

It will introduce a Tk 3,000 monthly allowance for each child with special needs and extend mobile allowances to employees across all grades, instead of only grade 5.

A separate committee will determine a pay structure for judicial service, with its members also receiving the new salaries from Jul 1 in phases.

The finance ministry said about 2.4 million military and civilian employees and 925,000 retired employees and other eligible beneficiaries will benefit.

The reforms will add an estimated Tk 1.06 trillion to annual government expenditure. The ministry said funds have been earmarked in the relevant fiscal years under the Medium-Term Budget Framework.

The Finance Division will issue the necessary gazettes, orders and instructions detailing salary fixation, allowances, pensions and post-retirement benefits.