Bangladesh Government Nears Final Steps for Major Public Sector Pay Hike
The Bangladesh government is moving closer to implementing a new pay structure for public sector employees. This big development will affect millions. Finance and Planning Minister Amir Khasru Mahmud Chowdhury confirmed the ongoing work on Wednesday.
The government formed a 10-member committee on April 21. Cabinet Secretary Nasimul Ghani leads this committee. It recommends a new pay structure. Finance Division sources say this committee has almost finished its recommendations.
After the committee completes its work, the proposal will go to the Cabinet for approval. The government will then publish an official gazette notification to formalize the new pay scale.
The International Monetary Fund (IMF) visited Dhaka in July. IMF officials advised the government to collect more revenue. They also asked about funding for the new pay structure. Bangladesh has a $5.5 billion loan program with the IMF.
Minister Chowdhury said the new pay structure has no link to any new IMF loan. He stated that work is continuing. He expects the gazette notification to be issued soon. A senior Finance Division official clarified the IMF only asked about funding. They did not object.
An earlier 23-member Ninth National Pay Commission submitted its report on January 21 this year. This commission recommended keeping the existing 20 pay grades. It proposed increasing salaries and allowances by 100 to 140 percent.
The commission suggested raising the minimum basic salary from Tk 8,250 to Tk 20,000. It also recommended increasing the highest basic salary from Tk 78,000 to Tk 160,000.
Implementing these changes will cost a lot. The government currently spends Tk 1.31 trillion on 1.4 million public employees and 900,000 pensioners. The new pay structure would need an extra Tk 1.06 trillion.
The government plans to implement the new basic salaries this financial year. Revised allowances will follow in the next financial year. The Finance Adviser announced this in Parliament on June 11. He said implementation would begin in phases from July 1 due to rising living costs.
The proposed budget for 2026-27 includes Tk 898.36 billion for public sector salaries and allowances. This is a slight increase from the previous year. The budget also allocates an additional Tk 440 billion for public employees, teachers, and pensioners. This shows the government supports the new pay structure.
