Bangladesh National Pay Scale 2026: Higher Grade After 8 Years, House Rent to Rise in 2028
Bangladesh National Pay Scale 2026 introduces higher-grade benefits after eight years, revised pensions and allowances, with new house rent rates from 2028.
Dhaka: Government employees in Bangladesh will be eligible for a higher grade without promotion after completing eight years in the same post under the National Pay Scale 2026, according to the newly issued gazette.
After receiving the first higher grade, an employee will be eligible for a second higher grade after completing another six years in the same post. The higher-grade benefit will generally be available a maximum of two times in the same post.
The gazette, issued on September 17 and published on September 19, sets out detailed provisions covering salary fixation, higher grades, pensions, house rent, medical allowances, education assistance and other benefits.
Higher grade after eight years
Under the new rules, a permanent employee who completes eight years of service in the same post may receive the next higher grade without being promoted, provided the employee’s service record is satisfactory.
After receiving the first higher grade, the employee can qualify for another higher grade after completing six more years in the same position. The second higher grade will not be considered a promotion.
The provision will apply up to Grade 4 of the pay scale. Employees already in Grade 4 or above cannot use the provision to move to Grade 3 or a higher grade through this mechanism.
Employees who had completed eight years but not 10 years of service in the same post before July 1, 2026, will also be eligible for the higher grade from that date, subject to the applicable conditions.
Maximum two higher grades in the same post
A permanent employee cannot receive the financial benefit of a higher grade more than twice in the same post.
Employees who had already received two or more selection grades, time scales or higher grades in the same post under previous pay scales will not be entitled to another higher grade in that post under the new pay scale.
However, employees who had received only one higher scale or grade in the same post by June 30, 2026, may qualify for a second higher grade after completing the required six-year period.
The gazette also provides for a third higher grade for employees serving in certain “blocked” posts where there is no provision for promotion. In such cases, an employee must complete another eight years in the same post after receiving each of the first two higher grades. The benefit can be received a maximum of three times in the same post during the employee’s career.
How salaries will be fixed from July 1
The gazette provides a formula for determining salaries under the new pay scale.
For example, an employee whose basic salary was Tk 13,790 on June 30, 2026 could have a basic salary of Tk 26,300 under the corresponding step of the new scale.
The difference between the employee’s existing basic salary and the starting salary of the old pay scale will be added to the starting salary of the corresponding new scale. If there is no matching step, the salary will be fixed at the next higher step.
For employees promoted on July 1, 2026, salary will first be determined in the lower post before being fixed according to the rules applicable to the promoted position.
Employees on deputation will have their new salary determined on the basis of the salary they would have received had they remained in their parent organization.
Maximum net pension set at Tk 70,200
The new pay scale also introduces revised rates for net pensions received by retirees and lifetime family pensioners. Existing rates for pension and gratuity will remain unchanged.
From July 1, 2026, net pensions will be revised based on the amount received on June 30, 2026. The increase rates are:
- Up to Tk 9,000: 100 percent
- Tk 9,001 to Tk 20,000: 75 percent
- Tk 20,001 to Tk 30,000: 65 percent
- Tk 30,001 to Tk 40,000: 60 percent
- Tk 40,001 and above: 55 percent
The minimum net pension has been set at Tk 10,000, while the maximum is Tk 70,200.
Retirees who were already receiving more than Tk 70,200 in net pension will continue receiving their existing amount until the annual increment following July 1, 2027.
The existing provision allowing 12 months of post-retirement leave at full average pay and encashment of 18 months of leave will remain in place.
New house rent rates from 2028
The revised house rent allowance rates under the new pay scale will take effect from January 1, 2028.
Until December 31, 2027, employees will continue receiving house rent allowance at the rates applicable on June 30, 2026.
In Dhaka North and Dhaka South city corporation areas, the new rates from 2028 will be:
| Grade | House rent allowance |
|---|---|
| Grade 20 to Grade 16 | 60% of basic salary |
| Grade 15 to Grade 10 | 50% |
| Grade 9 to Grade 5 | 45% |
| Grade 4 to Grade 1 and above | 40% |
For other designated city corporation areas and the municipalities of Savar and Cox’s Bazar, the corresponding rates will be 50%, 40%, 35% and 30%.
For other areas, the rates will be 45%, 35%, 30% and 25%, respectively.
Medical allowance rises with age
Working government employees will receive a monthly medical allowance of Tk 3,000 until the age of 50 and Tk 4,000 from the age of 50 years and one day until the end of post-retirement leave.
For retirees and lifetime family pensioners, the allowance will increase according to age:
- Up to 50 years: Tk 3,000
- 50 years and one day to 60 years: Tk 4,000
- 60 years and one day to 70 years: Tk 5,000
- Above 70 years: Tk 6,000
Bengali New Year allowance set at 15%
Government employees will receive a Bengali New Year allowance equivalent to 15% of their earned basic salary.
Retirees and lifetime family pensioners receiving monthly net pensions will also be eligible for the benefit.
Existing provisions for festival allowances and recreation allowances will remain unchanged. Retirees and lifetime family pensioners will continue to receive two festival allowances a year, each equivalent to their net monthly pension.
Education and tiffin allowances
The new pay scale provides an education assistance allowance of Tk 500 per child per month, up to a maximum of two children. The benefit will be available until the child reaches 23 years of age, subject to submission of an age certificate.
Employees in Grades 11 to 20 will receive a monthly tiffin allowance of Tk 500. The allowance will not be payable where an institution already provides a lunch allowance or free lunch.
An additional duty allowance of Tk 1,500 per month will also be available for employees performing current or additional responsibilities.
Advance increments for new recruits
Employees appointed on or after July 1, 2026 will normally receive the starting salary of the relevant new pay scale.
However, new recruits to Grade 9 or above may qualify for one or two advance increments based on specified educational qualifications.
A single advance increment will be available where qualifications such as an MBBS, Bachelor of Architecture or engineering degree are the minimum requirement for the position. In specified cases, higher academic qualifications in relevant fields may qualify an employee for two advance increments.
Direct recruits to Grade 9 positions in the Bangladesh Civil Service will receive an additional advance increment.
Non-cadre candidates appointed to Grade 9 positions on the recommendation of the Bangladesh Public Service Commission, despite not being recommended for a cadre position through the BCS examination, will have their salaries fixed at the starting step of Grade 9.
Service requirements for full salary at higher grades
Employees promoted to higher positions will have to complete specified periods of actual service in Grade 9 or above to receive the full salary applicable to the higher grade.
The required service periods are 20 years for Grade 1, 17 years for Grade 2, 14 years for Grade 3, 12 years for Grade 4, 10 years for Grade 5, five years for Grade 6 and four years for Grade 7.
Annual increments on July 1
Under the new pay scale, the annual increment date for government employees will be July 1, the first day of the fiscal year.
Following salary fixation under the new scale, employees will receive an annual increment on July 1, 2026, subject to the applicable rules. Newly appointed employees will qualify for the annual increment if they have completed at least six months of eligible service.
The revised allowance rates, however, will take effect from January 1, 2028. Employees appointed between July 1, 2026 and December 31, 2027 will receive allowances at the rates that would have applied to the position on June 30, 2026.
