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Pay Commission proposes bold salary overhaul as doubts linger over rollout

If implemented, minimum pay could rise to Tk 20,000, transforming the incomes of 1.5 million staff -- yet the rollout timeline remains unclear

Pay windfall promised, but unanswered questions loom

Hamimur Rahman Waliullah

bdnews24.com

Published : 19 Jan 2026, 01:48 AM

Updated : 19 Jan 2026, 01:48 AM

A dramatic reset of government pay is on the table.

Minimum salaries could more than double, senior officials would see major gains, and allowances would stay untouched.

For 1.5 million government employees, the National Pay Commission’s move will potentially lift the minimum salary to Tk 20,000 and the top echelon to Tk 160,000.

Existing allowances and benefits would continue alongside the revised structure.

Despite this unprecedented recommendation, uncertainty clouds its rollout under the interim government. Funds have been allocated in the revised budget -- an additional Tk 220 billion earmarked -- but full implementation may depend on the next administration.

With allowances included, a Grade 20 employee posted in Dhaka would earn around Tk 42,000 a month, compared with about Tk 17,000 at present.

Finance and bureaucratic officials warn that the proposed scale would reshape government spending, even as inflationary pressures and rising living costs have intensified demands for higher pay.

Commission Chairman Zakir Ahmed Khan describes the report as “very positive,” yet cautions that approval and execution remain separate battles, leaving employees and policymakers on tenterhooks.

Zakir, a former finance secretary, told bdnews24.com on Sunday: “We have an appointment with the chief advisor on Jan 21, when we will submit the report. I can say this much -- something very positive is coming.”

The interim government formed the Pay Commission on Jul 24, tasking it with submitting recommendations within six months. After multiple deadline extensions, the commission is now preparing to hand in the report.

Calls for a new pay scale had intensified amid high inflation and rising living costs. After the interim government assumed office last August, discussions initially focused on dearness allowance.

Many had expected an announcement in the budget for the new fiscal year in June. Instead, Finance Advisor Salehuddin Ahmed announced special benefits for government employees, effective from Jul 1.

Under the existing 2015 pay scale, there are 20 grades covering around 1.5 million government employees.

Government employees also receive house rent, medical and transport allowances, along with two annual festival bonuses and an additional 20 percent of basic pay for the Bengali New Year.

GRADES UNCHANGED, PAY RISES

A commission member said the number of grades would remain unchanged, but the ratio between the highest and lowest pay would be reduced from 1:9 to 1:8.

“All grades will see more than double the current basic pay,” the member said, adding that the proposal reflects extensive consultations and inflationary pressures.

BUDGET ALLOCATION RISES

The interim government initially passed a Tk 7.90 trillion budget, later revising it to Tk 7.88 trillion on Dec 24.

In the original 2025-26 budget, Tk 840.84 billion was allocated for salaries and allowances. The revised budget raises this to Tk 1.07 trillion.

An official from the Finance Division said the allocation covers partial or full implementation of the new pay scale, as well as recent increases in benefits. Implementation of the remaining portions would be left to the next government.

IMPLEMENTATION DOUBTS PERSIST

Fully implementing the pay commission’s recommendations would require more than doubling government spending in this sector, raising concerns amid weak revenue growth and rising interest payments.

Although revenue collection grew 15.54 percent between July and October, a shortfall of Tk 172.19 billion was recorded in the first four months of the fiscal year. Revenue targets have since been raised to Tk 5.88 trillion, with officials warning the deficit could exceed Tk 1 trillion by year-end.

Finance Advisor Salehuddin echoed the uncertainty on Tuesday, saying the commission’s work was “substantive,” but implementation was “a different matter.”

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