The Finance Division of the Ministry of Finance has issued the gazette for the long-awaited new pay structure for government officials and employees. Under the new pay scale—titled the ‘Service (Pay and Allowances) Order, 2026’—the basic pay of government employees has been increased by rates ranging from 100 percent to a maximum of 142 percent, depending on the grade.
The new pay structure is effective from July 1 of this year. However, the increased pay will be implemented in three phases rather than all at once. Government officials and employees will also receive any due salary arrears.
**Basic Pay to Increase in Three Phases**
According to the notification, in the first phase—running from July 1 to December 31 of this year—officials in Grade 9 and above will receive 40 percent of the increased basic pay, while employees in Grades 10 through 20 will receive 50 percent. This amount will be added to the salary drawn on June 30.
In the second phase, effective from January 1 to June 30, 2027, 70 percent of the increased basic pay will apply to Grade 9 and above, and 75 percent to Grades 10 through 20.
Subsequently, from July 1, 2027, the full 100 percent of the increased basic pay will come into effect across all grades. However, the benefits of the increased allowances under the new pay structure will be available starting January 1, 2028. Existing pensioners will also receive the full benefits of the new pay structure.
**Maximum Salary Tk 1.56 Lakh; Minimum Tk 20,000**
The new structure retains the existing 20 grades. Notably, the salaries of employees in relatively lower grades have been increased at higher rates.
The basic pay for officials in Grades 1 through 10 has been doubled—a 100 percent increase. Consequently, the basic pay for Grade 1 officials has risen from Tk 78,000 to Tk 1,56,000.
Meanwhile, the basic pay for employees in Grades 11 through 20 has been increased by up to 142 percent. As a result, the basic pay for the lowest tier—Grade 20—has risen from Tk 8,250 to Tk 20,000.