The government on Monday approved the National Pay Scale 2026, retaining the existing 20-grade structure while substantially raising basic salaries, pensions and several allowances for public servants.
The decision was taken at a cabinet meeting held on Monday, chaired by prime minister Tarique Rahman, with the new pay scale and the Joint Services Instructions 2026 for the armed forces, aligned with the new scale, made effective from July 1, 2026.
The government will implement the basic pay in three phases between July 1, 2026 and July 1, 2027, with priority given to employees in grades 10 to 20.
Under the approved scale, the starting basic salary for employees in the 20th grade has been fixed at Tk 20,000, while the prescribed salary for the first grade has been set at Tk 156,000.
The basic salary at the lowest grade will rise by 142 per cent, while the prescribed salary at the highest grade will increase by 100 per cent.
According to a high government official, the new pay structure was approved after reviewing the reports of the National Pay Commission-2025 and Armed Forces Pay Committee-2025, as well as a subsequent report prepared by a committee of secretaries.
The cabinet considered the government’s financial capacity, the overall economic situation, inflation, the cost of living, the living standards of public employees and the need for a balanced and rational pay structure while approving the new scale.
The government has also decided to introduce the ‘One Rank One Pension’ (OROP) system for military and civilian employees in phases by 2030, in line with its election pledge.
The government said immediate implementation of OROP would involve a substantial financial burden, while information on civilian employees who retired before 2019 was unavailable.
As an interim measure, it has decided to substantially increase net pensions on a slab basis.
Net pensioners receiving up to Tk 9,000 a month will get a 100 per cent increase, while those receiving Tk 9,001-Tk 20,000 will get a 75 per cent increase.
Those receiving Tk 20,001-Tk 30,000 will get a 65 per cent increase, those receiving Tk 30,001-Tk 40,000 a 60 per cent increase, and those receiving Tk 40,001 or more a 55 per cent increase.
The government said the measure would particularly benefit pensioners who retired many years ago and currently receive relatively low net pensions.
For the first time, the government has also introduced a monthly allowance of Tk 3,000 for each child with special needs of a government employee.
The scope of mobile phone allowances has also been expanded. Previously, the allowance was available only to employees in the fifth grade, but under the new pay scale, employees across all grades will be eligible.
The National Pay Scale 2026 will be implemented in phases from July 1, 2026, rather than being introduced in full at once, considering its financial implications and potential impact on inflation.
All allowances under the new scale will take effect simultaneously from January 1, 2028. Increases in net pensions will also be implemented in phases.
A separate committee has been formed for the judicial service. Based on its report, a Bangladesh Judicial Service Pay Scale will be approved and implemented in phases from July 1, 2026, in line with the National Pay Scale 2026.
The government said phased implementation would help ease inflationary pressure at the national level.
The new pay scale is expected to benefit around 2.4 million military and civilian employees and more than 900,000 retired employees and other eligible beneficiaries.
The additional annual financial cost of implementing the new pay scale has been estimated at Tk 105,580 crore, with allocations to be made in the budgets of the respective fiscal years under the Medium Term Budget Framework.
The government said the new pay scale would strengthen the financial security and motivation of public employees and contribute to building a more efficient, dynamic and people-oriented public administration.
The Finance Division will issue the necessary gazettes, orders and instructions for implementation, including detailed provisions on pay fixation, allowances, pensions and other post-retirement benefits.
