Gazette issued for new pay scale for government employees, effective from July

The government has issued a gazette notification introducing the new pay and allowances structure for public servants. The Finance Division under the Ministry of Finance published the notification on Saturday, formally naming the new structure the “Government Servants (Pay and Allowances) Order, 2026.”

Under the gazette, the new pay structure is deemed effective from July 1, 2026. However, the increased basic salaries will be implemented in phases rather than all at once.

From July 1 to December 31 this year, officials in Grade 9 and above will receive 40 percent of the increase in their revised basic pay, while employees in Grades 10 to 20 will receive 50 percent of the increase. The additional amount will be added to the salary drawn or due as of June 30.

From January 1 to June 30, 2027, officials in Grade 9 and above will receive 70 percent of the increase in basic pay, while employees in Grades 10 to 20 will receive 75 percent. The full revised basic salaries will come into effect from July 1, 2027.

As the new pay structure is deemed effective from July 1, 2026, employees will also be entitled to arrears due from that date.

According to the notification, various allowances under the new pay structure will come into effect from January 1, 2028. Pensioners will also receive the benefits to which they are entitled under the revised structure.

Under the new pay scale, basic salaries for officials in Grades 1 to 10 will increase by up to 100 percent, while basic salaries for employees in Grades 11 to 20 will rise by up to 142 percent. Various allowances will also be increased proportionately.

The new pay structure was approved at a Cabinet meeting on August 31 chaired by Prime Minister Tarique Rahman. The gazette was issued on Saturday following the approval.

Earlier, on April 21, the government formed a 10-member committee headed by Cabinet Secretary Nasimul Ghani to recommend how the new pay structure should be implemented. The committee subsequently finalised its recommendations.

Nearly a year after the formation of the Ninth National Pay Commission, the commission submitted its report to the then chief adviser, Professor Muhammad Yunus, on January 21. Former finance secretary Zakir Ahmed Khan headed the commission.

The new pay scale retains the existing 20-grade structure. The minimum starting basic salary under the revised scale is Tk 20,000, while the maximum basic salary for Grade 1 has been set at Tk 156,000.