The government on Monday approved the National Pay Scale 2026, raising the basic salary of government employees, introducing higher slab-based net pensions and new allowances including a disability allowance for children with special needs.
The new pay scale was approved at a cabinet meeting held on Monday with Prime Minister Tarique Rahman in the chair.
The revised scale will set the minimum starting basic salary at Tk 20,000 for Grade 20 and the maximum basic salary at Tk 156,000 for Grade 1.
Higher pensions for lower-income retirees
Under the new pay scale, the basic salary for employees in the lowest grade will increase by 142 percent, while the salary fixed for the highest grade will rise by 100 percent.
According to a Finance Ministry press release, the ratio between the salaries of the lowest and highest grades has been reduced to 1:1.78 from the existing 1:1.945 as part of efforts to ensure greater equity in the pay structure.
Under the new pay scale, pensioners receiving a monthly net pension of Tk 9,000 or less will get a 100 percent increase. Those receiving Tk 9,001 to Tk 20,000 will receive a 75 percent increase, while pensioners receiving Tk 20,001 to Tk 30,000 will get a 65 percent increase.
The increase will be 60 percent for those receiving Tk 30,001 to Tk 40,000 and 55 percent for pensioners receiving Tk 40,001 or more.
The government said the measure would particularly benefit pensioners who retired many years ago and currently receive relatively low net pensions.
OROP to be introduced by 2030
The government has also decided to introduce the One Rank One Pension (OROP) system for both military and civilian personnel in phases by 2030, in line with its election manifesto.
The Finance Ministry said immediate implementation of OROP would involve a substantial financial burden, while information on civilian employees who retired before 2019 is unavailable.
As an interim measure, the government has decided to substantially increase net pensions on a slab basis, taking into account the living standards and financial security of pensioners in old age.
New disability allowance for children
For the first time, the government has also decided to introduce a monthly disability allowance of Tk 3,000 for each child with special needs of a government employee.
Mobile phone allowance expanded
The scope of the mobile phone allowance has also been expanded.
Previously, the allowance was available only to employees in Grade 5, but under the new pay scale employees of all grades will be entitled to the benefit.
Phased implementation from July 2026
The National Pay Scale 2026 will be implemented in phases from July 1, 2026, rather than being introduced in full at once.
Considering the financial implications of the new pay structure and its potential impact on overall inflation, the government has decided to implement it over the current fiscal year 2026-27 and the next fiscal year 2027-28.
Employees in Grades 10 to 20 will receive priority in implementation, considering their comparatively lower incomes.
The revised basic salaries will be implemented in three phases between July 1, 2026 and July 1, 2027, while allowances will come into effect simultaneously from January 1, 2028.
The net pension increases will also be implemented in phases.
The government said the phased implementation would help contain inflationary pressure at the national level.
A separate committee has been formed for the judicial service.
Based on its report, a separate Bangladesh Judicial Service Pay Scale will be approved and implemented in phases from July 1, 2026, in line with the National Pay Scale 2026.
Pay scale to benefit 3.3m employees, retirees
The new pay scale will benefit around 2.4 million military and civilian employees and more than 900,000 retired employees and other eligible beneficiaries.
The government’s additional annual financial requirement for implementing the new pay scale is estimated at Tk 105,580 crore.
The Finance Ministry said the necessary allocation has been incorporated into the budgets of the relevant fiscal years under the Medium Term Budget Framework.
The government expects the new pay scale to strengthen the financial security and motivation of government employees and contribute to building a more efficient, dynamic and citizen-friendly public administration.
Gazettes, orders to follow
The Finance Division will issue the necessary gazettes, orders and instructions for effective implementation of the National Pay Scale 2026.
These will specify details on salary fixation, allowances, pensions and other post-retirement benefits.
The relevant ministries, divisions, directorates, offices and agencies will also be instructed to take necessary measures to implement the approved pay scale properly.
The government approved the new pay scale after reviewing recommendations prepared by a committee of secretaries following submission of reports by the National Pay Commission 2025 and the Armed Forces Pay Committee 2025.
In considering the recommendations, the Cabinet took into account the government’s financial capacity, the overall economic situation, inflation, the cost of living, the living standards of government employees and the need for a balanced and rational pay structure.