New notification from the Ministry of Finance regarding pay scales

Bangla Press Desk: Amidst discussions regarding the ninth national pay scale, the Finance Division of the Ministry of Finance has issued a new notification concerning the determination of allowances for government employees. It states that, until further notice, existing allowances—calculated as a percentage of the basic salary and falling outside the scope of the 'Services (Pay and Allowances) Order, 2026'—shall be determined and disbursed based on the basic salary drawn as of June 30, 2026.
The notification, issued on Monday (October 19), was signed by Dr. Md. Ferdous Alam, Joint Secretary of the Finance Division, by the order of the President.
What does the notification state?
According to the notification, for employees across government ministries, divisions, departments, agencies, state-owned enterprises, and autonomous institutions who receive allowances calculated as a percentage of their basic salary—outside the purview of the 'Services (Pay and Allowances) Order, 2026'—such allowances will be determined based on the basic salary received as of June 30, 2026, until further instructions are issued.
In other words, the basic salary as of June 30, 2026, will serve as the basis for calculating the specific categories of allowances mentioned in the notification. However, the eligibility of an employee for a particular allowance and the specific amount thereof will remain subject to relevant regulations and applicable official orders.
What does this mean for government employees?
The notification primarily provides guidance on how certain types of existing allowances are to be calculated. It should not be assumed that all allowances for all government employees will be determined under the same set of rules.
Employees should consult their individual pay slips, the regulations governing specific allowances, and the directives issued by their respective offices. If there is any ambiguity regarding a particular allowance, it is advisable to seek clarification from the accounts section or the relevant authority.
How will arrears under the new pay scale be calculated?
There is significant interest among government employees regarding the implementation of the new pay scale, the determination of salaries, and the calculation of potential arrears for preceding periods. The exact amount of any arrears will depend on the relevant government orders, the approved pay structure, the employee's grade, their basic salary, and the applicable allowances. If you use an unofficial online salary calculator, the results should not be considered the definitive official figures. It is essential to verify the salary scales and allowance rates used by the calculator against the relevant government gazette and your own payslip.
For the purpose of determining your final salary, you must follow the official government directives and the authorized pay structure.
Key points of the notification at a glance:
Date of issuance: 19 October 2026
Issuing authority: Finance Division, Ministry of Finance
Core directive: Certain existing percentage-based allowances are to be calculated based on the basic salary drawn as of 30 June 2026.
Duration: Until further notice.
Applicability: Employees of the organizations specified in the notification whose relevant allowances fall outside the scope of the 2026 Pay and Allowances Order.
In short, for government employees, this notification stipulates that certain existing percentage-based allowances will, for the time being, be calculated based on the basic salary as of 30 June 2026. To determine the specific allowance amount you are entitled to, please refer to the relevant government orders and your payslip.
BP/TD