The government has issued the detailed gazette notification for the National Pay Scale 2026, formally introducing the new pay and allowances structure for government officers and employees with retrospective effect from July 1.
The Finance Division of the finance ministry on Thursday published the notification, titled Service (Pay and Allowances) Order, 2026, as an extraordinary issue of the Bangladesh Gazette.
Under the new order, employees in grades 1 to 9 would receive 40 per cent of the difference between their revised basic pay under the new scale and their basic pay drawn or due on June 30, while employees in grades 10 to 20 will receive 50 per cent of the difference during the first phase.
The additional amount would be added to the salary drawn on June 30 and paid for the period from July 1 to December 31, 2026, according to the notification.
The government approved the National Pay Scale 2026 at a cabinet meeting chaired by prime minister Tarique Rahman on August 31.
The approval retained the existing 20-grade structure, raising the starting basic salary in Grade 20 to Tk 20,000 from Tk 8,250 and the fixed basic salary in Grade 1 to Tk 156,000 from Tk 78,000.
The new pay structure was prepared after consideration of the reports of the National Pay Commission 2025 and the Armed Forces Pay Committee 2025.
The government said the revised structure took into account its fiscal capacity, the overall economic situation, inflation, the cost of living and the living standards of government employees.
The gazette made clear that the new pay scale would not be implemented in full at once.
Instead, basic pay would be introduced in three phases between July 1, 2026 and July 1, 2027.
For the first six months, from July through December 2026, employees in grades 1 to 9 will receive 40 per cent of the increase resulting from the new scale, while those in grades 10 to 20 will receive 50 per cent.
The remaining portions of the revised basic pay will be introduced in subsequent phases, with the full revised basic pay scheduled to be reached by July 2027.
The phased approach means that the new pay scale is legally effective from July 1, but employees will not immediately receive the entire difference between their old and revised basic salaries.
The minimum starting basic salary in Grade 20 has been increased to Tk 20,000, while the fixed basic salary for Grade 1 has been raised to Tk 156,000.
The ratio between the highest and lowest grades has consequently been reduced to 1:1.78 from 1:1.945 under the previous structure.
The increase is proportionately larger at the lower end of the scale. The starting basic salary in the lowest grade rises by 142 per cent, while the fixed salary at the highest grade increases by 100 per cent, according to details released after the cabinet approval.
The new order also covers allowances and other financial benefits, but their implementation is being separated from the phased implementation of basic salaries.
Various revised allowances are scheduled to take effect simultaneously from January 1, 2028, according to the government’s implementation plan.
The provisions cover, among other matters, house-rent, medical, education assistance, festival, tiffin, washing, travel and conveyance allowances, as well as other benefits applicable to government employees.
The new pay structure also provides for a phased revision of net pensions for retired government employees and other eligible beneficiaries.
The government estimated that the new pay structure would benefit about 2.4 million military and civilian employees and more than 900,000 retired employees and other eligible beneficiaries.
The government estimated the additional annual expenditure arising from the new pay structure at more than Tk 1,05,580 crore, with funds allocated in the respective financial-year budgets.
The order also provides for the administrative process of fixing individual salaries under the new scale.
Pay fixation is to be carried out through the government’s iBAS++ system, allowing employees’ revised salaries to be determined according to their existing basic pay, grade and applicable service records.
