Bangladesh Ministry of Finance issues new pay scale rules for contract employees

The Bangladesh Ministry of Finance has issued an eight-point directive to determine the salaries, allowances, and benefits for employees appointed on a contractual basis across various non-cadre positions in the republic. This includes government offices, autonomous institutions, state-owned banks, and financial institutions.

The new regulations, signed by Joint Secretary Sharif Nazrul Islam, are effective retroactively from July 1, 2026, and supersede the previous notification issued on January 26, 2016.

For employees whose contracts remained valid after July 1, 2026, under the 2015 National Pay Scale, salaries will be restructured according to the new scale based on their respective grades and steps. While they will receive increased pay and allowances as per the 2026 Salary and Allowances Order, they will not be eligible for annual increments.

For new contractual appointments made after July 1, 2026, salaries will be determined based on the grade and step of the basic pay received immediately prior to retirement. Existing contracts must be amended to reflect these changes. In specific cases, the salary may be determined by the government or through mutual agreement between the employer and the employee.