Sweeping Pay Reforms to Double Civil Service Salaries

In a landmark shift for the nation’s administrative sector, the National Pay Commission is poised to submit a transformative report to the Chief Adviser of the Interim Government. The centrepiece of the proposal is a radical adjustment to the existing wage framework, effectively doubling the basic salary for over 1.5 million civil servants to counter the persistent pressures of inflation and the rising cost of living.

A New Floor and Ceiling for Remuneration

Under the recommendations drafted by the commission—led by former Finance Secretary Zakir Ahmed Khan—the basic monthly salary for the lowest tier (Grade 20) will rise from the current BDT 8,250 to a minimum of BDT 20,000. Similarly, the apex of the pay scale, occupied by the Cabinet Secretary and the Principal Secretary, is slated to increase from BDT 86,000 to a basic of BDT 160,000.

While the 20-grade hierarchy established in 2015 remains intact, the gross monthly take-home pay for urban-based employees will see an even sharper rise. For instance, a Grade 20 worker in Dhaka, once all housing, medical, and utility allowances are aggregated, is expected to receive a total package of approximately BDT 42,000.


Pay Scale Evolution: 2015 vs Proposed 2026 Framework

Grade/Position2015 Basic Pay (Current)2026 Proposed Basic (Min)Estimated Gross (Inc. Allowances)
Grade 20 (Lower Tier)BDT 8,250BDT 20,000BDT 42,000
Grade 9 (Entry Officer)BDT 22,000BDT 50,000BDT 75,000
Grade 1 (Secretary)BDT 78,000BDT 1,50,000BDT 1,90,000
Cabinet SecretaryBDT 86,000BDT 1,60,000BDT 2,10,000

Expanded Allowances and Retirement Security

The commission has also proposed a significant expansion of fringe benefits. The Bengali New Year (Boishakhi) Allowance, currently set at 20% of basic pay, is recommended to be hiked to 50%. Furthermore, the eligibility for transport allowances is being broadened to include officials up to the 10th Grade, a privilege previously restricted to those in the 11th Grade and below.

A vital component of the report addresses the welfare of the retired workforce through a tiered pension increment:

  • 100% Increase: For pensioners receiving less than BDT 20,000 monthly.

  • 75% Increase: For those receiving between BDT 20,000 and BDT 40,000.

  • 55% Increase: For those drawing a pension above BDT 40,000.

Implementation and Economic Outlook

Commission Chairman Zakir Ahmed Khan expressed immense pride in the document, stating, “We are presenting a very positive proposal that reflects the needs of the time.” The commission was originally formed on 24 July 2024 with a six-month mandate to overhaul the 2015 pay scale.

Despite the enthusiasm from the civil service, economists warn that the implementation of such a massive wage hike will place significant strain on the national exchequer. The government must now navigate the delicate balance between satisfying the legitimate financial needs of public employees and maintaining fiscal discipline to avoid further inflationary spikes.

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