Gazette issued, Ninth Pay Scale takes effect retrospectively

The Ministry of Finance on Saturday issued the gazette notification for the National Pay Scale 2026, formally putting the new salary, allowance and pension structure for government employees into effect retrospectively from 1 July 2026.

The gazette retains the existing 20-grade structure and sets out the phased implementation of revised basic pay, arrears, allowances, pension benefits and automatic higher grades.

Under the phased arrangement, employees in grades 9 and above will receive 40% of their increased basic pay from July to December this year, while those in grades 10 to 20 will receive 50%. From 1 January to 30 June 2027, the corresponding rates will be 70% and 75%. Full revised basic pay, along with the annual increment, will take effect from 1 July 2027.

The gazette confirms that employees will receive arrears from 1 July 2026, until the date of issuance. 

The salary of the cabinet secretary, principal secretary to the prime minister and equivalent officials has been fixed at Tk1.72 lakh, while senior secretaries and equivalent officials will receive Tk1.64 lakh.

The existing special benefit will be abolished from the effective date, with any amount drawn since 1 July to be adjusted against arrears under the new scale.

Allowances from 2028

Most revised allowances will take effect from 1 January 2028. Until then, existing rates will remain in force.

From 2028, house rent allowance will range from 25% to 60% of basic pay depending on the employee’s posting. 

Monthly medical allowance will be Tk3,000 for employees up to age 50 and Tk4,000 thereafter. Pensioners will receive Tk3,000 to Tk6,000 depending on age.

The gazette also fixes the Pohela Boishakh allowance at 15% of basic pay or net pension and provides education assistance of Tk500 per child per month for up to two children. 

Employees with registered children with disabilities will receive Tk3,000 per child per month, for up to two children.

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Automatic higher grades

The gazette introduces automatic higher grades for permanent employees who remain in the same post without promotion. 

An employee becomes eligible for the first higher grade after eight years in the same post, subject to satisfactory service, and for a second after another six years.

The benefit is available up to the fourth grade and will not be treated as a promotion. 

Employees who had completed eight years but less than 10 years in the same post before 1 July 2026, will qualify from that date.

The order also provides for 12 months of post-retirement leave on full average pay and encashment of up to 18 months of leave. All employees must complete pay fixation online through the iBAS++ system. Gazetted officers will use their system credentials, while non-gazetted employees will use their NID numbers and dates of birth, followed by OTP verification. The submissions will be electronically vetted by the respective DDOs and accounts offices.

The order excludes several groups, including judicial service members, defence personnel except civilian staff paid from defence estimates, police, BGB, specified state-owned manufacturing workers, apprentices, trainees, outsourced personnel, daily wagers and contractual or part-time staff.