Ninth pay scale draft heads to Cabinet, salaries may rise up to 100%

The draft proposal for long-awaited ninth national pay scale is being prepared for submission to the Cabinet, with a proposal to raise the basic salaries of government employees by as much as 100 per cent, according to officials familiar with the process.

A committee of secretaries led by the Cabinet secretary is reviewing the proposed salary structure and working to finalise the recommendations. However, several administrative and policy issues still need to be resolved before the proposal can be placed before the Cabinet, the officials said.

The committee has discussed raising basic salaries by up to 100 per cent, but the increase would not be uniform across all grades. Officials are considering relatively larger increases for lower-paid employees, taking into account inflation and the rising cost of living.

The Ninth National Pay Commission had earlier recommended increases ranging from 100 per cent to 140 per cent across different grades. Its proposal included raising the minimum basic salary from Tk 8,250 to Tk 20,000 and the maximum from Tk 78,000 to Tk 160,000.

The government is also considering a phased implementation of the new pay structure. Under one proposal, increases in basic salaries could be introduced first, followed by higher allowances for housing, medical care, transport and other benefits. Whether salaries and allowances will be implemented together or in stages will ultimately be decided by the Cabinet.

The eighth national pay scale took effect in 2015, nearly a decade ago. Although government employees have received annual increments since then, persistent inflation and higher living costs have intensified calls for a new salary structure.

The financial burden of implementing the ninth pay scale is also a key consideration. Earlier estimates suggested that fully implementing the commission's recommendations could require an additional Tk 43,000 crore in government expenditure. Plans are now being considered to reduce the additional burden to around Tk 37,000 crore through adjustments, including the incorporation of the existing 10 per cent special allowance.

The secretaries' committee has yet to complete its work. Its July 15 meeting did not finalise the recommendations, with several issues left for further discussion.

As a result, the exact date for placing the proposal before the Cabinet, the final percentage of salary increases and the implementation schedule will become clear only after the Cabinet takes a decision.