Bangladesh public sector pay and pension reforms

Bangladesh has implemented significant reforms to its public sector compensation and pension systems. In August 2026, the Cabinet approved the Ninth National Pay Scale 2026, which restructures salaries for approximately 2.4 million employees and 900,000 retirees. The new scale reduces the pay gap between the lowest and highest grades and includes a phased implementation of basic salary increases between 2026 and 2027. The plan also introduces a gradual rollout of the ‘One Rank One Pension’ (OROP) system intended for full implementation by 2030.

Following Cabinet approval, the government published the ‘Employment (Salary and Allowances) Order, 2026’ via gazette, establishing a revised pay scale retroactive to July 1, 2026. In September 2026, the Ministry of Finance issued a gazette notification detailing the ‘Government Service (Pay and Allowances) Order, 2026’. This notification clarifies that basic salaries for Grades 1 to 11 may increase by 100 percent, while Grades 12 to 20 could see increases ranging from 115 to 142 percent. The maximum basic salary is set at Tk1,72,000 for the Cabinet Secretary and the Principal Secretary to the Prime Minister, while the minimum for Grade 20 is Tk20,000.

Implementation is phased: from July to December 2026, grade 9 and above officials receive 40 percent of the additional basic pay, while grades 10 to 20 receive 50 percent. From January to June 2027, grade 9 and above receive 70 percent, and grades 10 to 20 receive 75 percent. Full basic pay increases take effect on July 1, 2027, with other allowances becoming effective on January 1, 2028. Pensioners receiving Tk9,000 or less per month will receive a 100 percent increase, while others will see increases between 55 and 75 percent.