New Circular Clarifies Allowances Under Ninth Pay Scale

The Finance Division of the Ministry of Finance has issued a new notification clarifying how certain allowances for government employees will be calculated under the ninth national pay scale.

The notification, signed by Finance Division Joint Secretary Dr Md Ferdous Alam under the authority of the president, concerns allowances that fall outside the Government Employees (Pay and Allowances) Order, 2026.

According to the notification, allowances calculated as a percentage of basic pay but not covered by the 2026 pay order will continue to be determined based on the basic salary received by employees on June 30, 2026, until further instructions are issued.

The provision applies to employees of government ministries, divisions, departments, agencies, state-owned enterprises and autonomous institutions who receive such percentage-based allowances outside the scope of the new pay order.

The notification was issued by the Finance Division’s Regulation-3 branch on October 18 and published in an extraordinary issue of the Bangladesh Gazette on October 19.

The government introduced the new national pay structure on September 19, following an interval of 11 years. Under the new structure, the minimum basic salary has been set at Tk 20,000, while the maximum has been fixed at Tk 156,000.

The new basic pay structure is scheduled to be implemented in three phases across the 2026–27 and 2027–28 fiscal years. Salary adjustments will be made based on the basic pay in effect on June 30, 2026.

However, allowances that fall outside the scope of the new pay order will not be recalculated under the new structure. Instead, they will continue to be calculated using employees’ basic pay as of June 30, 2026, until further instructions are issued.