Government Approves Significant Base Salary Hike for Civil Servants in Phased Implementation Plan

The government has approved a new national pay scale that will increase the basic salaries of civil and military employees by up to 142 percent while maintaining the existing 20-grade structure. Under the new framework, basic pay for grades 1 through 11 will rise by 100 percent, while grades 12 through 20 will see increases ranging from 115 to 142 percent.
The decision was finalized on Monday during a cabinet meeting chaired by Prime Minister Tareq Rahman. Following the meeting, Cabinet Secretary Nasimul Goni detailed the implementation plan during a press conference at the Press Information Department.
The new pay scale, designated as the National Pay Scale 2026, will be implemented in phases rather than immediately. Citing fiscal constraints and the impact of inflation, the government has scheduled the rollout across the 2026-27 and 2027-28 fiscal years. To support lower-income earners, the government will prioritize employees in grades 10 through 20. The basic salary adjustments will be distributed across three phases between July 1, 2026, and the following year, while all revised allowances are slated to take effect on January 1, 2028.
These phase-based adjustments will also apply to net pension benefits for retirees. Additionally, the government has formed a separate committee to review compensation for the Judicial Service. The pay scale for judicial officers will be determined based on the committee’s forthcoming report and will also be implemented in phases, retroactive to July 1, 2026.
The salary restructuring is expected to benefit approximately 2.4 million military and civil employees, along with 925,000 pensioners and other eligible beneficiaries. The government estimates an additional annual expenditure of 105.58 billion taka to support the new scale, with funding allocations already incorporated into the respective annual budgets.