Dhaka: The government has given the green light to the National Pay Scale 2026, which will significantly increase the basic salary of government employees and introduce a range of new benefits, including higher pensions and allowances for children with special needs. This decision was made during a cabinet meeting chaired by Prime Minister Tarique Rahman.
According to United News of Bangladesh, the Finance Ministry has revealed that the revised pay scale will see the minimum basic salary for government employees set at Tk 20,000 for Grade 20, while the maximum salary for Grade 1 will be Tk 156,000. The new structure aims to reduce the wage disparity between the highest and lowest grades with a revised ratio of 1:1.78, down from the previous 1:1.945.
The pay scale revision promises a 142 percent increase in the basic salary for the lowest grade employees, while the highest grade will see a 100 percent rise. The new pension scheme will provide a 100 percent increase for retirees receiving a monthly net pension of Tk 9,000 or less, with graduated increases for higher pension brackets. These changes aim to enhance financial equity and security among retirees, particularly those who have been on low pensions for several years.
In addition to salary adjustments, the government plans to roll out the One Rank One Pension (OROP) system by 2030 for both military and civilian personnel. This phased introduction is intended to manage the financial impact while addressing the lack of data for civilian employees who retired before 2019.
The new pay scale also introduces a monthly disability allowance of Tk 3,000 for each child with special needs of government employees. Furthermore, the mobile phone allowance, previously limited to Grade 5 employees, will now be available to all grades, expanding benefits across the board.
Implementation of the National Pay Scale 2026 will begin in phases from July 1, 2026, spanning the fiscal years 2026-27 and 2027-28. The government aims to prioritize employees in Grades 10 to 20 due to their lower income levels. The phased approach also seeks to mitigate inflationary pressures nationally.
A separate pay scale for the judicial service will be developed and implemented based on the report of a special committee, ensuring alignment with the National Pay Scale 2026.
This new pay scale will benefit approximately 2.4 million government employees and over 900,000 retirees. The estimated additional financial requirement for the implementation stands at Tk 105,580 crore, with allocations included in the budgets under the Medium Term Budget Framework.
The government anticipates that the new pay scale will boost the financial security of government employees and motivate a more efficient, dynamic, and citizen-friendly public administration. The Finance Division will issue necessary gazettes, orders, and instructions for the effective rollout of the pay scale, ensuring comprehensive implementation across all relevant sectors.