New pay scale proposal finalised, rollout from Jan

In a long-awaited move, the Pay Commission has finalised its proposal for a new pay scale for government employees, setting the stage for phased implementation starting in January 2026.

Sources at the Finance Ministry and the Pay Commission said partial implementation of the new pay structure is expected to begin on 1 January 2026, with full rollout scheduled for 1 July 2026, the first day of the 2026-27 fiscal year.

The Pay Commission is due to submit its final report to Finance Adviser Dr Salehuddin Ahmed on 21 January. The recommendations will then be placed before the Advisory Council for approval.

To prepare for partial implementation, the government has increased operating expenditure by Tk22,000 crore in the revised budget for the current FY26. 

According to Pay Commission estimates, full implementation of the proposed pay scale will require an additional Tk70,000-80,000 crore annually.

The proposed pay structure places particular emphasis on improving salaries and allowances for lower-grade employees. 

The commission has recommended more than doubling the minimum basic salary from the current Tk8,250, while the maximum basic salary is proposed to rise from Tk78,000 to over Tk120,000. 

It has also suggested maintaining a wage ratio of 1:8 between the lowest and highest grades.

Officials said the revised budget allocation reflects a policy decision to ensure financial readiness for the new pay scale, even if the interim government is unable to complete full implementation before the end of its tenure.

Under the revised FY26 budget, allocations for salaries and allowances have been increased to Tk1.07 lakh crore from Tk84,684 crore in the original budget.  Overall operating expenditure has climbed to nearly Tk5.63 lakh crore, while development spending under the Annual Development Programme (ADP) has been cut to Tk2 lakh crore amid slower project implementation.

Officials clarified that the additional allocation is not solely earmarked for the new pay scale, as it also covers recently enhanced allowances and other benefits for government employees. 

However, provisions have been kept to introduce either revised basic pay or allowances initially, with the remaining components to be implemented by the next elected government if required.

The Pay Commission was formed on 27 July and is headed by former Finance Secretary Zakir Ahmed Khan. The 21-member body was tasked with submitting its report within six months.

At present, around 15 lakh government employees are paid under the 2015 pay scale. 

Including members of the armed forces, employees of state-owned banks and financial institutions, and teachers at public educational institutions, the total number of beneficiaries is estimated at about 24 lakh.

Finance Adviser Dr Salehuddin Ahmed has said the government will take prompt action once the Pay Commission’s report is received, stressing that decisions will be made in line with the commission’s recommendations.