Pay commission to submit recommendations tomorrow

The new pay structure may be partially implemented from January 1 this year
By Star Business

The pay commission is all set to submit its recommendations for the new salary structure of government officers and employees tomorrow.

The commission’s chairman, Zakir Ahmed Khan, along with other members, will present the report to the chief adviser at the state guest house Jamuna at 5 pm, according to finance ministry officials.

Finance Adviser Salehuddin Ahmed will also be present on the occasion.

The ministry officials have indicated that the recommendations of the National Pay Commission 2026 may be partially implemented from January 1 this year and will be fully enforced from the first day of the 2026-27 fiscal year, that is, from July 1.

However, the finance adviser today told journalists that the report will be submitted tomorrow, but the government will inform them later when it will be implemented.

Asked whether the additional spending for the implementation of the new pay structure would fuel inflation in the country, the adviser said he could not say how it will affect the market.

He added that there should not be any impact from the new pay structure, as the government has taken steps for the development of all sectors.

In response to another question about whether the pay rise will create pressure on the next government, the adviser said the pay commission will submit its recommendations by taking into account the government’s capability.

He also noted that steps have been taken for widespread reforms in the National Board of Revenue, which will boost revenue collection in the future.

The current minimum salary of Tk 8,250 will be more than doubled, while the current maximum salary of Tk 78,000 will be raised to more than Tk 120,000.

The commission has recommended setting the ratio between the highest and lowest salaries at 1:8.

Meanwhile, in the revised budget for the 2025-26 fiscal year, operating expenses have been increased by Tk 20,000 crore.

The government has taken this step as part of the partial implementation of the new salary structure.

It plans to revise down development spending by Tk 30,000 crore this fiscal year and raise non-development expenditure by Tk 28,000 crore, The Daily Star has learnt from people involved with the proceedings.

The increase in non-development expenditure is to accommodate the National Pay Commission 2025.

The new pay structure would provide a higher increase to those in the lower grades, the official added.

Meanwhile, the government has finalised the revised budget, which will come into effect on February 1.

The overall budget size has been reduced by Tk 2,000 crore to Tk 788,000 crore.

At present, the number of government officials and employees stands at about 15 lakh.

In addition, the new pay structure will also apply to employees of various autonomous bodies and state-owned banks, although their salaries are not paid directly from the government budget.

The commission may recommend a separate pay scale for Bangladesh Bank and state-owned banks, distinct from the government pay structure.

The move is aimed at making state-owned banks more competitive with the private sector by allowing greater flexibility in compensation.

Separate pay structures are also expected for the judiciary and the armed forces, officials said.

The government formed the Ninth Pay Commission in July last year with former finance secretary Zakir Ahmed Khan as its chairman. The commission was asked to submit its report within six months.

The last national pay scale was implemented in 2015, meaning nearly a decade has passed since the most recent revision.

The commission is considering the cumulative impact of inflation over the past decade while making its recommendations.

The aim is to ensure that real wages under the new structure do not fall below the 2015 level.

At the same time, the government has advised the commission to frame its recommendations in line with the country’s revenue collection capacity and prevailing cost-of-living pressures.

The 2015 pay scale was implemented in two phases: the revised basic salary took effect from July 1, 2015, while revised allowances came into force a year later.

In fiscal 2014-15, the allocation for salaries and allowances stood at Tk 28,709 crore.

Following the implementation of the new pay scale and allowances, the allocation rose sharply to Tk 50,775 crore the following year.

This fiscal year, Tk 35,657 crore has been earmarked for pensions and gratuities for retired government employees.