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The government has approved the National Pay Scale 2026, revising the salaries, allowances and other financial benefits of government employees.
The approval was given at a Cabinet meeting on Monday (August 31), according to meeting sources.
The existing 20-grade structure will remain unchanged. Under the new pay scale, the starting basic salary for employees in the lowest, 20th grade has been set at Tk20,000, while the fixed salary for the highest, first grade has been set at Tk156,000. The new pay scale will be deemed effective from July 1, 2026.
The Cabinet also approved the Joint Forces Instructions 2026 for members of the armed forces in line with the new pay structure.
The new pay scale was approved based on recommendations prepared by a committee of secretaries after reviewing reports submitted by the National Pay Commission 2025 and the Armed Forces Pay Committee 2025.
The new structure takes into account the government’s financial capacity, the overall economic situation, inflation, cost of living, living standards of government employees and the need for a balanced and rational pay structure.
Salary Ratio Reduced
Under the National Pay Scale 2026, the starting basic salary for the 20th grade has been fixed at Tk20,000, while the fixed salary for the first grade is Tk156,000.
The ratio between the salaries of the lowest and highest grades has also been reduced from the existing 1:1.945 to 1:1.78.
As a result, the basic salary for the lowest grade will increase by 142%, while the fixed salary for the highest grade will rise by 100%.
‘One Grade, One Pension’ by 2030
In line with its election pledge, the government has committed to introducing a “one grade, one pension” system for military and civilian personnel.
However, due to the significant financial implications of implementing the system at once and the lack of necessary data on civilian employees who retired before 2019, the government has decided to introduce it gradually by 2030.
As an interim measure, the government has decided to substantially increase the net pensions of existing pensioners.
Under the new decision:
Those receiving a net monthly pension of Tk9,000 or less will receive a 100% increase.
Those receiving Tk9,001 to Tk20,000 will receive a 75% increase.
Those receiving Tk20,001 to Tk30,000 will receive a 65% increase.
Those receiving Tk30,001 to Tk40,000 will receive a 60% increase.
Those receiving Tk40,001 or more will receive a 55% increase.
The government said the arrangement would provide relatively larger increases to retirees who retired many years ago and currently receive lower net pensions.
Allowance for Children with Disabilities
For the first time, the new pay scale will introduce an allowance for government employees with children with disabilities or special needs.
Each eligible child will receive a monthly allowance of Tk3,000.
The government has also expanded the mobile phone allowance to cover employees of all grades, considering the growing cost of digital communication and internet use. Previously, only employees in the fifth grade were eligible for the allowance.
Implementation in Phases
The new pay scale will not be implemented at once. Instead, it will be introduced in phases during the 2026-27 and 2027-28 fiscal years, mainly to manage the financial impact and limit possible inflationary pressure.
Low-income employees will receive priority, particularly those in grades 10 to 20.
The revised basic salaries will be implemented in three phases between July 1, 2026 and July 1, 2027. Various allowances will take effect simultaneously from January 1, 2028. Pension increases will also be implemented in phases.
A separate committee has been formed for the judicial service. Based on its recommendations, a separate Bangladesh Judicial Service Pay Scale will be approved and implemented in phases from July 1, 2026, in line with the national pay scale.
The government expects phased implementation to help ease inflationary pressure at the national level.
Over 33 Million to Benefit
More than 3.3 million people are expected to benefit from the new pay scale, including around 2.4 million military and civilian employees and more than 900,000 retirees and other eligible beneficiaries.
The additional annual expenditure is estimated at Tk105,580 crore. The government said provisions for the additional spending have been included in the budgets for the relevant fiscal years under the Medium-Term Budget Framework.
The government expects the new pay scale to improve the financial security and motivation of public servants and contribute to building a more efficient, dynamic and people-oriented public administration.
The Finance Division will issue the necessary notifications, orders and instructions to implement the National Pay Scale 2026, covering salary fixation, allowances, pensions and other post-retirement benefits.
