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Bangladesh public sector pay and pension reforms

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-19 22:32 UTC → 2026-09-20 03:29 UTC · added removed

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 the Cabinet approval, the government published the ‘Employment (Salary and Allowances) Order, 2026’ via gazette. This order establishes gazette, establishing a revised pay scale retroactive to July 1, 2026. Implementation is phased: from July to December 2026, employees in grades 1–9 will receive 40% of the basic salary difference, while grades 10–20 will receive 50%. A second phase starting January 1, 2027, will increase these to 70% and 75% respectively, with full basic salaries effective July 1, 2027. Under this scale, the grade 1 basic salary rises from 78,000 BDT to 156,000 BDT, while the grade 20 minimum rises from 8,250 BDT to 20,000 BDT. Other allowances will remain at existing rates until January 1, 2028. 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 10 11 may increase by up to 100%, 100 percent, while Grades 11 12 to 20 could see increases of up ranging from 115 to 142%. 142 percent. The maximum basic salary is set at Tk1,72,000 for the Cabinet Secretary and the Principal Secretary to the Prime Minister. Additionally, pensioners 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% increase. 100 percent increase, while others will see increases between 55 and 75 percent.

Versions

  1. 2026-09-20 03:29 UTC Bangladesh public sector pay and pension reforms
  2. 2026-09-19 22:32 UTC Bangladesh public sector pay and pension reforms
  3. 2026-09-19 12:51 UTC Bangladesh public sector pay and pension reforms
  4. 2026-09-17 16:32 UTC Bangladesh public sector pay and pension reforms

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