The government has revised the salary and benefit structure for officials appointed on a contractual basis to various civilian posts under the Republic, including positions in government and autonomous bodies, state-owned banks and financial institutions, following the implementation of the National Pay Scale 2026 from 1 July.
The Finance Division of the Ministry of Finance issued a notification on 28 October, outlining the revised provisions for determining the salaries, allowances and other benefits of contractual appointees.
According to the notification, contractual officials appointed under different grades of the National Pay Scale 2015 before 1 July, 2026, whose contracts remain valid beyond that date, will receive salaries under the corresponding grades and steps of the National Pay Scale 2026 from 1 July, subject to amendments to their existing contracts with the government.
They will also receive salaries at the revised rates under paragraphs 1(3)(Ka), 1(3)(Kha), 1(3)(Ga), excluding annual increments, and concerned sub sub-section of 1(3)of the Service (Pay and Allowances) Order, 2026, along with applicable allowances specified in their government contracts.
For those appointed or to be appointed on a contractual basis after 1 July, 2026, the government will determine their contractual salaries based on the corresponding grade and step of the National Pay Scale 2026 under which they would have drawn their basic salaries immediately before retirement, subject to amendments to existing contracts, where applicable.
Such appointees will receive the revised salaries and applicable contractual allowances from their respective joining dates, in accordance with the relevant provisions of the Service (Pay and Allowances) Order, 2026. However, in special cases, the government may determine the salary separately, or the salary may be fixed through a contract agreed upon by both parties.
The notification clarified that the gross pension fixed for a contractual appointee, calculated before commutation or surrender, and any special additional pension, if applicable, will not be deducted from the salary fixed for the contractual position.
It also stated that contractual service will not entitle an appointee to any increment, gratuity or enhanced pension.
For contractual appointments of persons other than retired government employees, the Ministry of Public Administration and the Finance Division will determine salary, allowances and other contractual terms on a case-by-case basis, considering the merits of each case. The authorities will coordinate to finalise the terms before executing the relevant contracts.
The notification further stated that the relevant provisions of all previous orders, memorandums and instructions inconsistent with the new notification would stand cancelled, while earlier instructions consistent with it would remain in force.
It added that subsequent government orders issued from time to time would apply to salaries, allowances and other benefits payable under contractual agreements.
The Finance Division issued the notification cancelling its earlier notification dated 26 January, 2016, and declared that the new provisions would be deemed effective from 1 July, 2026.
Joint Secretary Sharif Nazrul Islam signed the notification on behalf of the President.
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