The proposed ninth pay scale for government employees deserves careful consideration, not only for its impact on public servants but also for its wider consequences for the economy and ordinary citizens. The reported proposal to raise basic salaries by up to 100 per cent, with implementation in two phases, comes at a time when the government is already struggling with fiscal pressures and persistent inflation. While better pay for government employees may be justified, the timing, scale and financing of the proposed increase require much deeper scrutiny.
According to the government’s own publication, Tk 89,836 crore has been allocated for salaries and allowances in the 2026-27 fiscal year. When pensions and gratuities are included, the allocation rises to Tk 1,41,434 crore. The ninth National Pay Commission reportedly recommended increases in pay and allowances ranging from 100 to 140 per cent, proposing to raise the minimum basic salary from Tk 8,250 to Tk 20,000 and the maximum from Tk 78,000 to Tk 1,60,000.
There is little doubt that government employees have faced a significant erosion of purchasing power over the years. The existing pay structure has remained in place for roughly 11 years, while the prices of food, housing, transport, education, healthcare and other essentials have risen considerably. A reasonable adjustment in salaries is therefore understandable and, in many respects, necessary.
But the government cannot look at the issue solely from the perspective of government employees. A large salary increase will inevitably increase public expenditure. If the additional cost is financed through higher borrowing, excessive money creation or a sharp expansion of the budget deficit, the consequences could ultimately affect the entire economy.
The greatest concern is inflation. When millions of employees receive substantially higher incomes, demand for goods and services is likely to increase. If production and supply do not expand at the same pace, prices will rise further. At the same time, higher government spending can add to demand-side inflationary pressures. The result could be a situation in which public servants receive higher nominal salaries but ordinary citizens face higher prices for food, rent, transport, education and essential services.
There is also a question of fairness. A significant pay increase for government employees should ideally be accompanied by measures to protect low-income workers, private-sector employees and vulnerable households whose incomes may not rise alongside inflation. Otherwise, the benefits of the pay scale could be concentrated among a relatively limited section of society while the broader population bears the cost through higher prices and taxes.
The government should therefore proceed cautiously. A phased implementation may be sensible, but it should be linked to clear fiscal capacity, inflation trends and revenue performance. The authorities should also explore ways to finance the increase without undermining macroeconomic stability.
Public servants deserve fair and competitive compensation. But a pay rise should not become a price rise for everyone else. The government must strike a careful balance between improving employees’ living standards and protecting the purchasing power of the wider population. Any new pay scale must ultimately strengthen the economy—not create another inflationary burden for the common people.
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