Public servants’ new pay scale rolls out in four phases

Basic salaries will be implemented in three phases between July 1, 2026, and July 1, 2027
Star Business Report

The government will implement the new pay scale for public servants in four phases over two fiscal years to ease pressure on the budget and contain possible inflationary effects.

Under the plan, basic salaries will be implemented in three phases between July 1, 2026, and July 1, 2027, while all allowances under the new structure will take effect from January 1, 2028.

The government decided against implementing the entire pay structure at once, considering the additional fiscal burden and its possible impact on inflation.

Once fully implemented, the new pay scale will benefit around 24 lakh military and civilian employees, along with about 925,000 pensioners and other eligible beneficiaries.

The revised structure will require an estimated additional annual expenditure of Tk 105,580 crore. The necessary funds have been provided for in the budgets of the relevant fiscal years under the medium-term budget framework.

Tk 3,000 allowance for children with special needs

The government has also decided to introduce, for the first time, a monthly allowance for children with special needs of public servants.

Each eligible child will receive Tk 3,000 a month under the new pay scale.

Moreover, the mobile phone allowance will be extended to employees of all grades. Until now, the allowance was available only to employees in Grade 5.

The government expects the phased rollout to help manage the additional budgetary burden and limit inflationary pressure.