Dhaka, Bangladesh: The implementation of Bangladesh's Ninth National Pay Scale has been delayed due to mounting economic pressure, a widening revenue deficit, and concerns raised by the International Monetary Fund (IMF), according to government and economic sources.
A five-hour meeting of the secretary-level committee recently concluded without reaching a final decision, leaving the long-awaited pay scale stalled despite earlier expectations that an official gazette would be issued in July.
Nearly 1.4 million government employees and around 900,000 pensioners continue to await the new salary structure. Officials say the announcement could be made once administrative and legal complexities are resolved and the committee's recommendations are finalized.
Two Major Obstacles
According to officials from the Finance Division and economists, two primary factors are delaying final approval of the Ninth Pay Scale.
1. Financial Burden on the National Budget
The government has already allocated approximately Tk 89,836 crore for salaries and allowances of government employees and a total of Tk 141,434 crore, including pensions, in the 2026-27 national budget.
However, fully implementing the new pay scale would require an additional Tk 44,000 crore, posing a major challenge amid the country's ongoing revenue shortfall.
2. IMF's Inflation Concerns
The IMF has warned that injecting such a large amount of additional spending into the economy could increase liquidity and further fuel inflation.
The global lender has also cautioned that if revenue collection falls short of targets, the government's debt burden could rise significantly.
IMF Recommends Delay
Finance Ministry sources said IMF officials discussed the financial implications of the proposed pay scale during recent meetings in Dhaka.
According to the sources, the IMF advised Bangladesh to postpone the implementation of the new salary structure by another two years, arguing that immediate implementation would substantially increase government expenditure, widen the budget deficit, and intensify inflationary pressure.
Government Still Committed
Despite the challenges, government officials say authorities have not abandoned the plan to introduce the Ninth Pay Scale.
If all administrative procedures proceed as planned, the government aims to publish the official gazette before the IMF-World Bank Annual Meetings in Thailand in October, paving the way for implementation.
Officials from the Finance Ministry and the Cabinet Division said the proposal is currently in the final stage of financial and administrative review. Once the secretary-level committee finalizes its recommendations, the proposal will be submitted to the Cabinet through the Finance Division.
Following Cabinet approval, legal vetting will be completed before the official gazette is published. No salary payments under the new structure can be made before the gazette is issued.
Phased Implementation Under Consideration
Government sources said several alternative implementation strategies are being examined, including phased salary increases, priority benefits for selected grades, and measures to reduce fiscal pressure.
The secretary-level committee has already reviewed separate recommendations for the civil administration, judiciary, and armed forces and is working to integrate them into a unified pay structure.
Growing Demand for Salary Reform
Bangladesh's current Eighth National Pay Scale came into effect in 2015, and no major revision has been made in more than a decade.
During this period, the cost of living—including housing, healthcare, education, and essential commodities—has risen significantly, increasing pressure on the government to revise salaries for public sector employees.
According to the Finance Ministry, nearly 1.5 million government officials and employees, along with several hundred thousand pensioners, are expected to benefit from the new pay scale, which may include increases in basic salaries, house rent allowances, medical benefits, and other allowances.
Economists estimate that full implementation could increase the government's annual expenditure by at least Tk 82,000 crore, with actual costs potentially rising further due to higher pension liabilities, festival bonuses, housing allowances, and other employee benefits.
