The Government has taken another significant step towards implementing the long-awaited Ninth National Pay Scale for public sector employees. According to recent developments from the Ministry of Finance, the proposed national budget for the 2026–27 fiscal year is expected to allocate approximately Tk 35,000 crore specifically for the initial phase of the new pay structure. A draft budget has already been prepared and will be finalised following approval from senior authorities.
Officials indicate that the government is currently weighing two possible implementation models. The first involves a three-phase rollout, while the second proposes incremental adjustments to salaries and allowances over the next two fiscal years. Both approaches aim to balance fiscal sustainability with employee expectations.
Under the preliminary proposal, the first phase may see basic salaries of government employees increased by up to 50 per cent in the upcoming fiscal year. The remaining adjustments would be implemented in the following year. In addition, housing allowances and other benefits are expected to be revised in a staggered manner, potentially in two instalments during the third phase.
To assess the broader economic implications, a high-level committee led by the Cabinet Secretary has been formed. This body is tasked with evaluating the fiscal impact of the proposed pay structure, taking into account inflationary pressures, revenue generation capacity, and overall macroeconomic stability. Its recommendations will play a crucial role in shaping the final decision.
According to government estimates, the full implementation of the Ninth Pay Scale would require an additional expenditure of approximately Tk 1,06,000 crore. Of this, around Tk 80,000 crore would be allocated to salary enhancements, while the remainder would cover pensions and benefits for employees of government-supported educational institutions under the MPO system.
The proposed national budget for the 2026–27 fiscal year is projected to be around Tk 9,30,000 crore, marking an increase of nearly 18 per cent compared to the current fiscal year. Revenue collection targets are expected to reach approximately Tk 6,30,000 crore. In the current fiscal year, allocations for salaries and allowances stand at Tk 84,114 crore, while pension expenditure is Tk 35,657 crore.
Proposed Pay Structure Overview
| Category | Current Position | Proposed Structure |
|---|---|---|
| Minimum Basic Pay | Tk 8,250 | Tk 20,000 |
| Maximum Basic Pay | Tk 78,000 | Tk 1,60,000 |
| Grade System | Existing structure | 20 grades |
| Implementation Method | Gradual adjustments | Three phases / Two fiscal years |
| Additional Annual Cost | Not applicable | Approx. Tk 1,06,000 crore |
At present, Bangladesh has approximately 1.4 million government employees and around 900,000 pensioners. The combined annual expenditure for their salaries and pensions is estimated at Tk 1,31,000 crore. Once the new pay structure is fully implemented, this figure is expected to rise significantly, potentially placing additional pressure on overall budget management.
Historically, the Eighth National Pay Scale was implemented in 2015 in two stages, with basic salary adjustments introduced first, followed by revisions in allowances. The proposed Ninth Pay Scale appears to follow a similar phased approach, reflecting the government’s effort to balance employee welfare with fiscal discipline and long-term economic sustainability.