The Government has moved a step closer to implementing the long-anticipated Ninth National Pay Scale for public sector employees, with fresh fiscal planning indicating a substantial financial commitment in the upcoming budget cycle.
According to recent initiatives by the Ministry of Finance, around Tk 35,000 crore is likely to be allocated in the proposed financial framework for the 2026–27 fiscal year to support the initial phase of the new pay structure. An early draft of expenditure planning has already been prepared and is currently awaiting higher-level approval before finalisation.
Officials are actively considering a phased implementation strategy. Two main options are under review: either a three-stage rollout or a gradual adjustment of salaries and allowances across the next two fiscal years. Under the preliminary proposal, government employees may see a salary increase of up to 50 per cent in the first phase alone, beginning in the next fiscal year. The remaining adjustments would be implemented in subsequent phases, with housing allowances, medical benefits, and other entitlements potentially revised in separate instalments.
To assess the broader economic implications, including inflationary pressure, revenue capacity, and fiscal sustainability, a high-level committee headed by the Cabinet Secretary has been formed. This committee is expected to evaluate the financial impact of the proposed pay structure and submit its final recommendations to the government.
Preliminary estimates suggest that full implementation of the Ninth Pay Scale could require an additional expenditure of approximately Tk 106,000 crore. Of this, nearly Tk 80,000 crore would be allocated to salary adjustments, while the remainder would cover pensions and the government’s contributions to education sector employees under the MPO system.
The overall national budget for the 2026–27 fiscal year is projected to reach approximately Tk 930,000 crore, reflecting an increase of nearly 18 per cent compared with the current fiscal year. Revenue collection targets are expected to be set at around Tk 630,000 crore. In the current fiscal year, allocations for salaries and allowances stand at Tk 84,114 crore, while pension expenditures amount to Tk 35,657 crore.
The proposed structure also envisions a simplified grading system comprising 20 pay grades, aimed at reducing long-standing disparities between the highest and lowest tiers of public sector pay. The minimum monthly basic salary is expected to rise significantly from Tk 8,250 to Tk 20,000, while the maximum may increase from Tk 78,000 to Tk 160,000.
| Category | Current Structure | Proposed Structure |
|---|---|---|
| Minimum Basic Salary | Tk 8,250 | Tk 20,000 |
| Maximum Basic Salary | Tk 78,000 | Tk 160,000 |
| Number of Grades | Existing system | 20 grades |
| Implementation Method | Incremental adjustments | Three-phase or two-year plan |
| Additional Estimated Cost | Not applicable | Tk 106,000 crore |
Bangladesh currently has around 1.4 million government employees and approximately 900,000 pensioners. Any large-scale revision of pay scales is therefore expected to have a significant impact on public expenditure and fiscal management. Officials note that the proposed reforms are also intended to address inflationary pressures and improve living standards for state employees, while balancing long-term budgetary stability.
The previous, Eighth National Pay Scale was implemented in stages from 2015, with salary adjustments introduced first and allowances revised subsequently. The Ninth Pay Scale appears set to follow a similar phased approach, reflecting both fiscal caution and administrative continuity.