Government officials and employees are still waiting for clarity on the proposed ninth national pay scale, as the government has yet to finalize or approve the long-awaited revision despite the start of the new fiscal year.
The proposal remains under administrative review and has not been placed before the cabinet, while no gazette or implementation order has been issued. As a result, questions remain over the revised basic salary, implementation date, allowances and benefits for pensioners.
Officials concerned said that, as of Thursday, no gazette or notification regarding the new pay scale had been issued. Although a cabinet meeting was held that afternoon, it could not be confirmed whether the matter was discussed.
Bangladesh Secretariat Officers and Employees United Council President Nurul Islam told Dhaka Tribune: "It would not be appropriate to say with certainty what stage the pay scale is currently at or how it will be implemented before the gazette is issued."
He added that he did not know whether the issue had been discussed at the government's 13th cabinet meeting.
Discussions at different levels have mentioned possible timelines, including implementation from July, publication of the gazette in August and payment of revised salaries from October. However, as the government has not officially announced any schedule, none of these timelines can be considered final.
Final proposal yet to clear key stage
According to relevant sources, the next major step in implementing the ninth National Pay Scale is the completion of the review and recommendations by the Secretary Committee.
Officials are preparing an integrated proposal after assessing the likely financial impact of the new salary structure, including the number of grades, the gap between minimum and maximum salaries, annual increments, allowances and pension liabilities.
Once the Secretary Committee finalizes its recommendations, the proposal will be sent to the Finance Division for scrutiny before being placed for higher-level government approval. Cabinet approval will be required before a gazette or implementation notification can be issued.
This means several administrative and policy steps remain before the new pay scale can take effect.
A key consideration for the government is its fiscal capacity. Raising basic salaries would increase expenditure not only on salaries for serving officials and employees but also on house rent, festival allowances, gratuity, retirement benefits and pensions.
If the revised structure is extended to autonomous and semi-autonomous bodies, state-owned institutions and Monthly Pay Order (MPO)-listed educational institutions, the overall financial burden would increase further.
Discussions have therefore focused on whether the pay scale should be implemented in full or in phases. One option under consideration is to introduce the revised basic salary first and adjust house rent, medical, transport and other allowances later. However, no government order has been issued on the matter.
Supporters of phased implementation argue that it would ease fiscal pressure during the first year. Employees, however, are concerned that if only the basic salary is revised while allowances remain unchanged, they may not receive the full benefit of the new pay structure.
The concern is particularly significant for lower-grade employees, whose income is closely linked to house rent, medical expenses and other living costs.
It also remains undecided whether the special benefit currently provided with the basic salary will continue, be incorporated into the revised basic salary or be withdrawn.
Traditionally, interim benefits are merged into the revised basic salary when a new pay structure comes into effect. However, it remains unclear which approach will be adopted until the gazette is issued.
Pension and technical preparations
The proposed pay scale has generated interest among both serving and retired government employees.
Issues under discussion include pension adjustments following an increase in basic salaries, whether the minimum pension will be raised and how differences between existing and future pensioners' benefits will be determined.
Discussions have also included the possibility of increasing pensions in phases and providing greater benefits to those receiving comparatively lower pensions. However, the Finance Division has not announced any rate or formula.
Without a clear mechanism for adjusting benefits for employees retiring before and after the new pay structure takes effect, concerns over disparities may arise.
Implementation of the new pay scale will also require significant technical preparations. Salaries, increments, deductions, allowances, income tax and pensions for government officials and employees are currently managed through the Integrated Budget and Accounting System (iBAS++).
To implement the revised grades and salaries, a new salary matrix will need to be incorporated into the system. The software must also automatically determine the appropriate salary stage for each employee based on their existing pay.
In addition, service records, posts, grades and increment information must be updated to avoid complications in salary determination.
However, as of July 16, no separate iBAS circular or government instruction had been issued regarding implementation of the ninth National Pay Scale.
Relevant sources said the government could issue the gazette later while making the revised pay structure effective from an earlier date. In that case, arrears for the applicable period would have to be paid.
The effective date, method for calculating arrears and timeline for releasing funds would all need to be specified in the implementation notification.
Although making the revised pay structure effective from July 1 remains under discussion, it cannot yet be regarded as a confirmed decision. Until the gazette is issued, neither the revised salaries nor arrear calculations can be finalized.
Since the implementation of the 2015 pay structure, the cost of living, house rent, medical expenses, education costs and prices of essential commodities have increased significantly.
Government employees view the proposed pay scale not only as a salary revision but also as a means of restoring purchasing power.
At the same time, a substantial increase in salaries could place additional pressure on inflation and the national budget.
The government therefore faces the challenge of balancing an acceptable salary structure for officials and employees with revenue, inflation and overall public expenditure.
Attention will now focus on three remaining stages: the Secretary Committee's final recommendations, cabinet approval, and the issuance of the gazette and implementation instructions.
Once the gazette is issued, the final details of the revised grades, basic salaries, allowances, pensions, special benefits and effective date will become clear. Until then, the figures and timelines currently being discussed should be regarded as possibilities rather than confirmed decisions.