Government employees in Bangladesh are expected to begin receiving higher salaries under the new national pay structure by the end of October, although their allowances will initially remain at existing rates.
The Finance Division of the Ministry of Finance issued a notification on Monday, stating that the existing allowance rates applicable up to June 30, 2026, will remain in force until further instructions are issued.
The directive applies to employees of government ministries, divisions, offices and agencies, as well as state-owned and autonomous institutions.
According to the decision, allowances will continue to be calculated as a percentage of existing basic salaries until the revised basic pay prescribed under the 2026 Pay and Allowances Order is fully implemented. A notification on the matter was issued on September 19.
The government had previously indicated that allowances under the new pay structure would be introduced at a later stage.
Under the revised structure, the minimum basic salary for government employees has been set at Tk 20,000, while the maximum is Tk 156,000.
Although the new pay structure took effect on July 1, implementation of the increased salaries will be phased in over time during the 2026–27 and 2027–28 fiscal years.
Under the announced schedule, the first phase covers July 1 to December 31, 2026, followed by the second phase from January 1 to June 30, 2027. The third phase will run from July 1 to December 31, 2027.
Allowances under the new structure are scheduled to take effect from January 1, 2028.
Meanwhile, the online process for fixing government employees’ salaries under the new pay structure is underway and is expected to be completed on Tuesday.
Since October 5, government employees have been entering the required information through the ‘Pay Fixation’ option in the iBAS++ system.
Completion of the online salary-fixation process is expected to facilitate the payment of revised basic salaries to government employees under the new structure.