Government approves new pay structure for public sector employees with phased implementation through 2028
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The Bangladesh government on Monday approved the National Pay Scale 2026, marking a significant overhaul of civil service compensation that will see base salaries increase by 100 to 142 percent depending on grade levels. The new structure, which is retroactively effective from July of this year, aims to streamline earnings through a four-phase implementation process, while simultaneously abolishing the existing 15 percent special allowance.
The implementation of the new pay scale is tiered based on job grades. For officials in the 1st to 9th grades, the base salary increment will be realized in three installments: 40 percent in the first phase starting this July, 30 percent in January 2027, and the final 30 percent in July 2027. Employees in the 10th to 20th grades, which include the majority of the workforce, will receive priority with a 50 percent increase in the first phase, followed by two subsequent 25 percent increments. Revised allowances, including house rent and mobile phone stipends, are scheduled for integration in the final phase beginning January 1, 2028.
Under the new policy, a new recruit in the 9th grade will see their base salary rise from the previous 22,000 taka to 44,000 taka upon full implementation. By 2028, including house rent—which varies from 40 to 50 percent based on location—alongside medical, education, festival, and transport allowances, a junior officer’s total monthly compensation is expected to reach approximately 70,000 taka.
For the primary education sector, the government has upgraded the position of headmaster to the 10th grade. A new headmaster, previously starting at a base salary of 16,000 taka, will now start at 32,000 taka. Assistant teachers, categorized in the 13th grade, will see their starting base salary rise from 11,000 taka to 24,000 taka, with the potential to reach 58,000 taka through annual increments. Once fully implemented, an assistant teacher’s total monthly remuneration is projected to be nearly 40,000 taka.
The transition for existing employees is more complex, as their final earnings depend on their current base salary, length of service, and accumulated annual increments. While new recruits benefit immediately from the adjusted pay scales, veteran staff members are calculating their total compensation based on their current tenure. For example, an assistant teacher with 17 years of experience currently earning 33,000 taka per month expects their total package to rise to approximately 50,000 taka once all phases are fully realized.
Cabinet Secretary Nasimul Goni stated on Tuesday that the Finance Division is expected to issue an official gazette notification regarding the new pay structure within the next 48 hours. This notification is anticipated to provide the definitive calculations and clarifications required to resolve lingering questions regarding the transition for both new and incumbent government employees.
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