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Pay Scale: Big Good News Coming for Medical Allowance

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The Pay Commission is poised to recommend an increase in the medical allowance for government employees from BDT 3,500 to BDT 5,000 under the Ninth Pay Scale. These recommendations are scheduled to be submitted to the Chief Advisor’s office next Wednesday (January 21).

On Monday (January 19), a source from the Pay Commission stated that the Ninth Pay Scale recommendations will propose medical allowance in two categories. In the first category, government employees aged 40 or less will be recommended a monthly medical allowance of BDT 4,000. For the second category, those above 40 years of age, the commission will recommend an allowance of BDT 5,000.

A member of the Pay Commission, speaking on condition of anonymity, said, “It is being recommended that older employees receive a slightly higher medical allowance than younger ones. Older individuals typically incur additional expenses for medication. Hence, a slightly higher allowance is being recommended for them. After retirement, a government employee will receive a monthly medical allowance of BDT 5,000.”

Currently, according to the 2015 pay scale, the basic salary for the 20th grade is BDT 8,250. A BCS officer in the ninth grade receives BDT 22,000. At the highest level, secretaries’ basic salaries range from BDT 78,000 to BDT 86,000.

Meanwhile, despite uncertainties regarding the implementation of the new pay structure, the Ministry of Finance has made provisions for funds in the budget. The allocation for salaries and allowances for government officers and employees in the 2025-26 fiscal year budget has been increased to BDT 1,06,684 crore, which is approximately BDT 22,000 crore more than before.

An official from the Finance Division stated that this allocation has been made with the goal of implementing either the basic salary or an allowance from January. The remaining portion will depend on the decisions of the subsequent government.

However, there are apprehensions about whether the Pay Commission’s recommendations can be fully implemented due to revenue collection deficits, high interest expenses, and overall economic pressure.

Regarding this, financial advisor Salehuddin Ahmed commented, “The Pay Commission is presenting a strong proposal, but implementation is a different and challenging matter.”

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