Will higher salaries bring efficiency and accountability?

Amid severe economic turmoil, the BNP government has decided to increase the salaries and allowances of government officers and employees. This is a bold move by the administration. On Monday, the Cabinet approved the 9th Pay Scale for Bangladesh’s public servants. Under this framework, basic salaries will see a 100% to 142% increase, implemented in three instalments across two fiscal years.

The public sector retains its 20-grade structure. The lowest tier, Grade 20, will see its basic pay jump by 142%, from Tk8,250 to Tk20,000. The scale for this grade now ranges from Tk20,000 to Tk48,400, meaning a new recruit starts at Tk20,000 and can reach Tk48,400 over time. Meanwhile, the top tier, Grade 1, will see its fixed basic salary double from Tk78,000 to Tk1,56,000.

Alongside this pay structure, the Cabinet approved separate salary frameworks for the judiciary and the armed forces. Implementing the 9th Pay Scale will require an estimated additional annual expenditure of Tk1,05,580 crore, with Tk44,000 crore allocated in the current fiscal budget.

Following the announcement, many have expressed concern over rising living costs and inflation. Effective retrospectively from 1 July this year, analysts point out that the government sanctioned the pay increase despite low domestic revenue collection, weak tax yields and production slumps driven by the energy crisis.

Consequently, the government may rely more on bank borrowing while cutting the Annual Development Programme (ADP), placing additional strain on the private sector. To manage inflation, budgetary pressures and the global economic fallout from the Iran-US conflict, the government opted for a phased, two-year implementation. Meeting these targets over the next year will demand higher public debt and further cuts to public development projects.

Executing this decision under harsh conditions reflects the government’s hope that higher pay will boost civil servants’ morale, efficiency and capacity, ultimately raising overall national productivity, strengthening administrative accountability, improving service transparency, curbing harassment of citizens and driving growth.

International precedents, however, reveal mixed outcomes regarding civil service pay increases. Research indicates that salary increases in Bhutan and Nepal significantly reduced bribery and corruption. Bhutan’s notable rise in Transparency International’s Corruption Perceptions Index is largely credited to better public-sector pay.

In India, increased compensation helped curb illicit earnings. Following the 7th Pay Commission, effective from 1 January 2016, positive workplace impacts emerged. India adjusts Dearness Allowance (DA) twice a year based on inflation and grants a standard 3% annual increment to foster professionalism. The 8th Pay Commission, formed on 3 November 2023 and effective retrospectively from 1 January 2026, is set to submit its final report by May 2027, with employees collecting arrears accordingly. Salary increases in India correlate directly with greater responsibility and accountability.

Pakistan, however, provides a contrasting example. Higher pay failed to yield positive results. Despite economic distress in FY2023-24, Pakistan raised salaries by 35% for Grades 1–16 and 30% for Grade 17 and above, setting the minimum wage at PKR32,000. Yet Pakistan ranks 136th on Transparency International’s index, where systemic corruption among high-ranking civil and military officials continues to hobble the economy.

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Clearly, higher pay does not automatically guarantee efficiency, responsibility or accountability; public-sector performance ultimately hinges on governance. Over the past 15 years, civil servants have enjoyed interest-free car loans, maintenance allowances, foreign travel and rapid promotions, yet corruption persisted, while legal protections even shielded them from investigation. Bureaucrats increasingly acted as masters rather than public servants because the regime relied on them to retain power.

While raising civil service salaries is reasonable under current inflationary pressures, the bureaucracy must not become an unbearable burden on the state. Although an administration relies on its bureaucrats, over-dependence can sink a government. Paying public servants better is a justified policy, but it must be paired with strict accountability and performance management if it is to benefit the public.

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Audite Karim is a writer and playwright. Email: [email protected]