The interim government has approved a new national pay scale for government officials and employees, set to take effect on 1 January 2026.
Under the revised structure, salaries will rise by 90% to 97%, doubling the pay of nearly 1.5 million government workers.
The new pay scale will cover around 2.2 million families, including military and civilian officials as well as MPO-listed teachers.
While the move has been welcomed by public servants, economists warn it could trigger a sharp rise in inflation and place additional pressure on public finances.
Officials from the Finance Division have acknowledged that the reform will increase government expenditure but also argue that higher incomes will boost purchasing power and tax revenues.
The lowest government salary, currently Tk8,250, is expected to rise to over Tk16,000, bringing even the lowest-paid employees into the tax bracket for the first time.
Economists, however, caution that the measure may deepen economic inequality and conflict with efforts to control inflation.
Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), said the new structure could “worsen social disparities” given the lack of similar pay increases in the private sector.
National Pay Commission Chairman Zakir Ahmed Khan admitted the reform would create “some additional financial pressure” but said it was necessary to adjust for long-stagnant wages.
Finance Adviser Salehuddin Ahmed confirmed that the new pay scale would be implemented within the interim government’s tenure through a gazette notification, adding that funds for implementation would be included in the revised national budget for the current fiscal year.
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