Bangladesh’s public sector employees may soon see a significant jump in their salaries, as the National Pay Commission prepares to submit a proposal that would nearly double basic pay across all grades.

If the recommendations are approved, the minimum basic salary for government employees would rise to Tk 20,000, while the highest basic pay could reach Tk 160,000, according to officials familiar with the proposal.

The Pay Commission, led by former finance secretary Zakir Ahmed Khan, is scheduled to submit its report to the Chief Adviser on January 21. “We are putting forward a strong and realistic proposal considering current inflation and living costs,” he said, adding that the recommendations aim to bring meaningful relief to public servants.

How much will salaries increase?

The existing 20-grade pay structure will remain unchanged, but the gap between the highest and lowest salaries is set to narrow. Currently, the ratio stands at 1:9; the new proposal suggests reducing it to 1:8.

Under the revised structure, a Grade-20 employee working in Dhaka could earn around Tk 42,000 per month, including house rent and other allowances—up from roughly Tk 17,000 at present.

Budgetary provision, but uncertainty remains

In the revised budget for the 2025–26 fiscal year, the government has increased allocation for salaries and allowances by nearly Tk 22,000 crore, raising the total to Tk 106,684 crore.

Finance ministry officials say the allocation allows for partial or phased implementation, possibly starting from January. Full implementation, however, may be left to the next elected government.

Economic constraints

Despite the optimism, concerns remain over feasibility. Revenue collection has lagged behind targets, while rising interest payments continue to strain public finances.

Finance Adviser Salehuddin Ahmed recently noted that although the Pay Commission’s work is “substantive,” implementation would depend on broader fiscal realities.

Background

Government employees are currently paid under the 2015 pay scale, where the minimum basic salary is Tk 8,250 and senior secretaries receive up to Tk 86,000 as basic pay.

Amid prolonged inflation and rising living costs, demands for salary revision have intensified. While many expected a dearness allowance, the interim government instead introduced a special benefit, effective from July 1.

Whether the proposed new pay structure will be fully rolled out remains uncertain—but for nearly 1.5 million government employees, expectations are now firmly on the rise.