Dbarta24 Report — The official gazette publication for the new national pay scale for public servants has been postponed beyond its initial mid-month target, following a high-level review of the country’s macroeconomic stability, revenue capacity, and global financial conditions.
The decision emerged after a five-hour marathon meeting chaired by Prime Minister Tarique Rahman at the Cabinet Division in the Secretariat on Sunday.
Following detailed briefings on the fiscal implications of the proposed pay structure, the Prime Minister directed officials to conduct a more comprehensive evaluation before final approval.
Extended Cabinet Committee Review Underway
Following the Prime Minister’s directive, the 10-member high-level Secretaries Committee—headed by Cabinet Secretary Nasimul Gani—is slated to convene multiple additional sessions to re-examine the administrative and financial ramifications.
Officials estimate that the review process could take up to three months, although efforts will be made to expedite the timeline.
Once the committee submits its final recommendations, the proposal will be placed before the Cabinet for formal approval prior to gazette notification by the Finance Division.
The implementation strategy may ultimately take a phased approach.
IMF Recommendations and Global Economic Factors
The delay coincides with observations from the International Monetary Fund (IMF). During recent bilateral discussions in Dhaka, an IMF delegation advised deferring the full implementation of the pay scale for up to two years to ease immediate fiscal pressures under ongoing loan programs.
While government policymakers are reluctant to put the plan on hold for that long, they have adjusted the rollout timeline.
The gazette is now slated to be published ahead of the IMF Annual Meetings scheduled for October, allowing for further dialogue with the multilateral lender during their upcoming visit in November.
Beyond domestic fiscal considerations, broader macroeconomic uncertainties—including potential energy price hikes in the global market triggered by Middle East instability and domestic gas supply constraints—prompted the leadership to re-evaluate the heavy expenditure burden.
High Financial Stakes and Past Pay Commissions
The current pay scale review stems from the report of the National Pay Commission-2025, formed under former Finance Secretary Zakir Ahmed Khan.
Submitted on January 22, the commission recommended a 100% to 140% increase in basic salaries and allowances across public service cadres:
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Lowest Basic Pay: Proposed to increase from Tk 8,250 to Tk 20,000.
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Highest Basic Pay: Proposed to rise from Tk 78,000 to Tk 1,60,000.
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Allowances: Adjustments include raising the Boishakhi allowance from 20% to 50%, alongside updated transport allowances for 10th to 20th grade employees.
Full implementation of these recommendations, along with parallel proposals from the Bangladesh Judicial Service Pay Commission and the Armed Forces Pay Committee, was originally projected to add approximately Tk 1,06,000 crore to state expenditure.
However, a modified proposal featuring strategic spending cuts was recently submitted to the Finance Ministry.
Back-Pay Assurance for Government Workers
Public servants in Bangladesh have waited nearly a decade for a comprehensive revision of their compensation framework, with the last national pay scale introduced in 2015.
While 5% annual increments and special allowances were granted periodically, basic salary scales remained unchanged.
Despite the procedural delay in issuing the formal gazette, officials affirmed that financial allocations have already been integrated into the current budget framework.
The revised budget designated an additional Tk 54,572 crore under the public administration sector, with roughly Tk 44,000 crore earmarked specifically for civil servants, MPO-enlisted teachers, and pensioners.
Consequently, once the gazette is officially published later this year, the revised pay scale will be applied retroactively, ensuring government employees receive their adjusted benefits effective from July.