New proposed government pay scale may be implemented in phases for government employees

PNN News Desk. Dhaka

Considering the current economic reality of the country, the government is considering implementing the proposed new pay scale for government officials and employees in phases instead of a single implementation. According to sources from the Ministry of Finance, discussions are ongoing regarding a plan to implement the proposed 9th pay scale in three phases.

According to related sources, a preliminary allocation of around 350 billion taka has been proposed in the next fiscal year’s budget for partial implementation. However, full implementation of the salary structure will depend on the country’s financial capacity, revenue collection, and inflation situation. Therefore, full implementation may not be possible before the 2028–29 fiscal year.

According to the proposed structure, in the first phase, basic salaries of government employees may be increased by up to 50 percent. In the next fiscal year, the remaining salary adjustments will be made. In the third phase, housing allowance, medical allowance, and other benefits will be gradually implemented.

Recommendations have also been made to increase various allowances in the new pay scale. The Bengali New Year allowance, currently 20 percent of basic salary, has been proposed to be increased to 50 percent. In addition, tiffin allowance for employees in grades 11 to 20 is proposed to be increased from 200 taka to 1,000 taka. Education allowance is also being discussed to be increased to 2,000 taka per child per month.

Officials from the Ministry of Finance said that the government is taking a cautious approach considering inflation and economic pressure. For this purpose, a high-level committee has been formed under the Cabinet Secretary. The committee will review revenue income, expenditure capacity, and overall economic situation and provide final recommendations, which will then be submitted to the Prime Minister for approval.

According to government estimates, full implementation of the new pay scale will require an additional expenditure of about 800 billion taka. In addition, a large amount of funds will also be required for pensioners and MPO-listed teachers and employees.

Currently, the government spends over 840 billion taka annually on salaries and allowances of government employees. Around 360 billion taka is spent on pension payments. In total, expenditure for about 1.4 million employees and 900,000 pensioners stands at approximately 1.31 trillion taka.

According to the recommendation of the 9th Pay Commission, the proposed structure includes 20 grades. It recommends increasing the minimum salary from 8,250 taka to 20,000 taka and the maximum salary from 78,000 taka to 160,000 taka.

Previously, the 8th National Pay Scale introduced in 2015 was also implemented in phases. At that time, basic salaries were implemented first, followed by various allowances. This time, a similar strategy may also be followed, according to sources.