Cabinet on Monday approved the proposed new pay scale for government employees at a meeting chaired by Prime Minister Tarique Rahman, with basic salaries set to rise by up to 100% for officers in grades 1–10 and up to 142% for employees in grades 11–20.
Meeting sources said allowances and other benefits would also increase proportionately with basic pay under the approved salary structure.
The Finance Ministry will now begin the process of issuing a formal notification following Cabinet approval. The process may take another one to two weeks to complete, sources said.
A 10-member high-level review committee, chaired by Cabinet Secretary Nasimul Gani, was formed on April 21 to determine implementation methods and recommendations for the new pay structure. The committee submitted its final recommendations to the Cabinet.
The interim government formed the 23-member `Ninth National Pay Commission' on July 27, 2025, nearly a decade after the formation of the Eighth Pay Commission. The commission, led by former Finance Secretary Zakir Ahmed Khan, submitted its main report to then Chief Adviser Dr Muhammad Yunus on January 21 this year.
The Zakir Ahmed Khan-led commission recommended retaining the existing 20 grades while increasing basic salaries and allowances by between 100% and 140%. The commission proposed raising the minimum basic salary from Tk8,250 to Tk20,000 and the highest salary from Tk78,000 to a fixed Tk160,000.
According to the commission’s calculations, the government currently spends Tk131,000 crore annually on salaries and allowances for 1.4 million government employees and 900,000 pensioners. Implementing the proposed structure would require an additional Tk106,000 crore.
Sources said the Nasimul Gani committee recommended that salary increases should not exceed 100%. The committee also advised implementing the new pay structure in phases over two years, with basic salaries effective from July 1 of the current fiscal year and increased allowances from July 1 of the following fiscal year.
Finance Ministry sources said the proposal approved by the Cabinet on Monday differs somewhat from previous arrangements. Basic salaries will take effect from July 1 this year but will be paid in instalments.
The Finance Minister announced in his June 11 budget speech in the National Parliament that the new pay scale would be implemented from July 1 this year. The minister said employees’ living costs had risen significantly because of inflation after they had remained on the same pay scale for 11 years, and indicated that the new scale would be implemented gradually.
The national budget for the current fiscal year allocated Tk141,434 crore for salaries and allowances of government employees, up Tk54,572 crore from the revised allocation in the previous fiscal year.