New Bangladesh pay scale takes effect from July 1

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Government employees’ long wait for the ninth national pay scale is over. The government has approved the new “National Pay Scale 2026.” The new structure retains 20 grades. Among the biggest changes: the starting basic salary for the lowest, 20th grade, rises from 8,250 taka to 20,000 taka, while the starting basic salary for the highest, 1st grade, rises from 78,000 taka to 156,000 taka.

Under the latest decision, the new pay structure will be deemed effective from July 1 this year. However, the increased financial benefits will not be given all at once. Basic salary will be adjusted in three phases: a portion of the basic salary will take effect in the first phase, with the remainder adjusted in the following two phases. Housing allowance and other associated benefits will take effect from January 1, 2028.

Who gets what under the new pay scale?

The new structure retains all 20 grades, and the number of proposed steps within each grade remains unchanged. However, changes were made to the starting basic salary for the 1st, 8th and 9th grades.

GradeOld starting basic salaryNew starting basic salary
1st grade78,000 taka156,000 taka
8th gradeRevised from proposal
9th gradeRevised from proposal
20th grade8,250 taka20,000 taka

The new structure has also narrowed the gap between the starting basic salaries of the highest and lowest grades. Under the existing pay structure, that ratio stood at 1:9.45. Under the new structure, it has been reduced to 1:7.8.

What changed in the 1st, 8th and 9th grades?

The National Pay Commission had proposed setting the 1st grade’s starting basic salary at 160,000 taka. However, the secretaries’ committee recommended reducing it to 156,000 taka. In the end, the new pay structure set the 1st grade’s basic salary at 156,000 taka.

For the 8th and 9th grades, too, the rate of salary increase was reduced from the commission’s proposal. The commission had proposed raising the starting basic salary in these two grades by 105 percent. The secretaries’ committee recommended reducing that to 100 percent. For other grades, the rate of starting basic salary increase proposed by the commission was retained.

When will the new salary take effect?

The new pay structure will be deemed effective from July 1, 2026. However, the additional financial benefits will be adjusted in phases. In other words, even though the new scale has been approved, employees will not receive all the benefits at once.

According to the latest information available, a portion of the basic salary will take effect in the first phase, with the remainder adjusted in the following two phases. Housing allowance and other associated benefits have been decided to take effect from January 1, 2028.

Why were some changes made?

While reviewing the National Pay Commission 2025’s proposal, the secretaries’ committee took into account inflation, the cost of living and the country’s socioeconomic situation. The gap between the starting basic salaries of the highest and lowest grades was also reviewed at this time.

As a result, the new structure was approved with some trimming of the commission’s proposal. However, the proposal to retain 20 grades and to set the 20th grade’s starting basic salary at 20,000 taka was upheld.

Latest update at a glance

  • New scale: National Pay Scale 2026
  • Grades: 20
  • Effective from: July 1, 2026
  • Lowest starting basic salary: 20,000 taka (20th grade)
  • Highest starting basic salary: 156,000 taka (1st grade)
  • Basic salary adjustment: in three phases
  • Housing and other associated allowances: effective from January 1, 2028
  • Special change: revised starting salaries for the 1st, 8th and 9th grades