Fresh bad news on the pay scale as frustration grows

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Discussion of the ninth national pay scale is again at its height among government officers and employees who have been waiting 11 years for a new pay structure. Although there were expectations that the new pay scale would take effect from 1 July, no formal announcement has yet come from the government. Uncertainty and anxiety are therefore growing among public servants.

The International Monetary Fund (IMF) has expressed concern over the implementation of the new pay scale. In a recent meeting with the Finance Division, the National Board of Revenue (NBR) and Bangladesh Bank, sources concerned said, the organisation advised greater caution in implementing the pay structure, given the country’s current economic situation.

In analysts’ view, a new pay scale is a demand of the times, given current inflation and the cost of living. But arranging the money needed to implement it is the government’s biggest challenge.

The government’s revenue income has still not reached the expected target. There is also pressure from the budget deficit. In this situation a large-scale pay rise could increase government spending further. The organisation also fears that an additional flow of money into the market could create fresh pressure on inflation.

According to the Ministry of Public Administration, about 14.5 lakh government officers and employees are currently working in the country. If the ninth national pay scale takes effect, their pay and allowances will rise significantly.

In the budget for the 2026-27 financial year, about 89,836 crore taka has been allocated for the pay and allowances of government officers and employees. Including pensions and gratuities, total spending under this head has been set at 1,41,434 crore taka.

In addition, an extra 54,572 crore taka has been allocated under the “public administration — net” head compared with the revised budget. According to the finance ministry, about 44,000 crore taka of this has been reserved for implementing the new pay scale. This money will be spent on raising the pay and allowances of government employees, MPO-listed teachers and pensioners.

Economists say, however, that although government spending is rising, revenue collection is not rising in proportion. As a result, implementing the entire pay scale at once could widen the budget deficit and increase dependence on domestic and foreign borrowing. That would create additional pressure on the economy and could also raise the risk of a liquidity crisis in the banking sector.

Government sources too indicate that in the present economic reality it could be difficult to implement the full pay scale in a single step. The government is therefore working on a plan to raise pay in stages.

Sources concerned said there is a plan to raise the basic pay in the first stage. Various allowances and other financial benefits may then be added in phases.

In analysts’ view, implementing the new pay scale is necessary to meet the long-standing expectations of government officers and employees. But to maintain economic stability, a strategy of phased implementation may be the most realistic.

Government officers and employees are now watching for the government’s final decision and the publication of the gazette on the ninth national pay scale.

বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report

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