The government has approved the National Pay Scale 2026, aiming to rationalize the salaries, allowances, and financial benefits of public servants. The Cabinet approved the new pay scale at a meeting today, along with the Joint Services Instructions 2026 for the armed forces. Both will take effect from July 1, 2026. The decision follows reviews of the National Pay Commission-2025 and the Armed Forces Pay Committee-2025 reports.
Key Features of the New Pay Scale
The new pay scale retains the existing 20 grades for government employees. It sets the minimum entry-level basic pay for Grade 20 at Tk 20,000 and the maximum basic pay for Grade 1 at Tk 1,56,000. The ratio between the minimum and maximum basic pay has been reduced to 1:1.78 from 1:1.945. This aims to improve equity in the pay structure. The minimum-grade basic pay will rise by 142 percent, while the highest grade's fixed pay will increase by 100 percent.
The government has decided to introduce the One Rank One Pension (OROP) system gradually by 2030. As an interim measure, substantial increases in net pensions on a slab basis have been approved. Pensioners receiving Tk 9,000 or less will get a 100 percent increase, while those receiving Tk 9,001-Tk 20,000 will get a 75 percent increase. Those receiving Tk 20,001-Tk 30,000 will get a 65 percent increase, Tk 30,001-Tk 40,000 will get a 60 percent increase, and those receiving Tk 40,001 or more will get a 55 percent increase.
Implementation and Financial Implications
The National Pay Scale 2026 will be implemented in phases from July 1, 2026. Considering the financial implications and potential inflationary impact, the government will implement it over FY2026-27 and FY2027-28 instead of all at once. Priority will be given to employees in Grades 10 to 20, who have relatively lower incomes. The revised basic pay will be implemented in three phases between July 1, 2026, and July 1, 2027, while allowances will become effective simultaneously from January 1, 2028.
The new pay scale will benefit around 24 lakh military and civilian employees and more than 9 lakh retired employees and other eligible beneficiaries. The additional annual expenditure is estimated at approximately Tk 1,05,580 crore, with provisions made in the budgets of the relevant fiscal years under the Medium-Term Budget Framework (MTBF). The government expects the new pay scale to strengthen financial security and motivation among government employees, contributing to a more efficient and citizen-friendly public administration.
