Highlights:
- Allowances remain unchanged until further govt orders
- New basic salaries begin with October’s payroll
- Minimum basic salary set at Tk20,000
- Maximum basic salary set at Tk1,56,000
- Revised allowances take effect from January 2028
Government employees will continue to receive house rent, medical, and other allowances at existing rates despite the implementation of the new National Pay Scale, until further orders are issued.
Under the existing arrangement, allowances will be paid at the rates effective on 30 June this year, according to a notification issued by the Finance Division of the Ministry of Finance today (19 October).
The directive applies to employees of various government ministries, divisions, offices, agencies, state-owned enterprises, and autonomous institutions.
However, government employees will begin receiving higher basic salaries under the new pay structure from this month’s salary. Finance Division sources said the budget has the necessary allocation to cover the increased payments.
The Service (Pay and Allowances) Order, 2026 for government employees provides for allowances to be paid as a percentage of existing basic salaries until the prescribed basic salaries under the new structure take effect. The notification introducing the new order was issued on 17 September.
The government had earlier indicated that allowances under the new structure would be implemented at a later date.
Under the new pay scale, the minimum basic salary for government employees has been set at Tk20,000, while the maximum is Tk1,56,000.
Although the new structure is deemed effective from July 1, the government has decided to implement the increased salaries in phases rather than all at once. The new pay scale will be implemented gradually over the 2026-27 and 2027-28 fiscal years.
According to the plan, the first phase covers 1 July to 31 December this year, followed by the second phase from 1 January to 30 June 2027. The third phase will run from 1 July to 31 December 2027. Allowances under the new structure will take effect from 1 January 2028.
Meanwhile, work is underway to determine government employees’ basic salaries under the new pay scale. Since 5 October, employees have been submitting the necessary information through the “Pay Fixation” option of the government’s iBAS++ system. The process is scheduled to be completed by tomorrow (20 October).
Finance Division sources said the increased basic salaries under the new structure would be reflected in this month’s salary payments once the pay-fixation process is completed.
However, employees will have to wait for the phased implementation and the scheduled introduction of revised allowances to receive the full benefits of the new pay structure.
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