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DHAKA: Government employees are set to start receiving higher salaries under the new national pay structure by the end of this month, although their allowances will remain unchanged for the time being.
The existing allowance rates, which were in effect until June 30 this year, will continue until the government issues further instructions, despite the implementation of the new pay structure.
The Finance Division of the Ministry of Finance issued a notification on Monday, October 19, outlining the arrangements. The directive applies to employees of government ministries, divisions, offices and agencies, as well as state-owned and autonomous institutions.
According to the government decision, allowances will continue to be calculated as a percentage of employees’ existing basic salaries until the new basic pay rates specified in the 2026 Pay and Allowances Order are fully implemented. A notification to this effect was issued on September 19.
The government had earlier indicated that allowances under the new pay structure would be introduced at a later stage.
Under the new national pay structure, the minimum basic salary for government employees has been set at Tk 20,000, while the maximum has been fixed at Tk 156,000.
Although the new structure took effect on July 1, the government has decided to implement the increased basic salaries in phases over the 2026-27 and 2027-28 fiscal years.
Under the phased implementation plan, the first stage covers July 1 to December 31 this year, followed by the second stage from January 1 to June 30, 2027. The third stage will run from July 1 to December 31, 2027. Allowances under the new structure are scheduled to take effect from January 1, 2028.
Meanwhile, the online process for fixing government employees’ salaries under the new pay structure is nearing completion. The process is scheduled to end on Tuesday.
Government employees have been entering the required information through the ‘Pay Fixation’ option of the iBAS++ system since October 5.
Once the online salary-fixation process is completed, it will pave the way for government employees to receive their increased basic salaries under the new pay structure.