Government Allocates 35 Billion Taka for Public Sector Salary Increases The upcoming 2026–2027 national budget includes a phased plan to implement a new salary structure for public sector employees. The Ministry of Finance has begun preparations to allocate between 30 to 35 billion taka for this initiative, which aims to gradually increase salaries while addressing economic challenges. The plan is expected to take effect partially from July 1, 2026, with full implementation by 2029. Officials emphasize that global economic uncertainty, rising subsidy costs, social security program pressures, and increased loan interest rates have created significant challenges for budget management. Despite these constraints, the government has proceeded with the salary reform, anticipating that it will enhance administrative efficiency in the long term. The proposed plan involves three stages. In the first phase, covering the 2026–2027 fiscal year, a portion of the basic salary—up to 50%—will be increased. The second phase, for 2027–2028, will focus on consolidating the remaining basic salary adjustments. The final phase, in 2028–2029, will integrate allowances such as transportation and medical benefits into the new structure, ensuring full implementation. A key aspect of the new salary framework is reducing the salary disparity between the lowest and highest grades. The ratio of minimum to maximum salary will decrease from 1:9.4 to 1:8. This change is expected to significantly benefit lower-grade employees. For instance, the minimum basic salary for the 20th grade will rise from 8,250 taka to 20,000 taka, while the maximum for the 1st grade will increase from 78,000 taka to 160,000 taka. Overall, salary ranges across grades could vary between 100% and 140% of the current levels.#government #ministry_of_finance #public_sector #salary_reform #high_level_committee
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