Finance Minister Amir Khosru Mahmud Chowdhury on Thursday announced that a new pay scale for government employees will be implemented in phases starting from 1 July, citing the rising cost of living and inflationary pressures.

He made the announcement while presenting the proposed national budget for the 2026-27 fiscal year in Parliament.

The minister said government employees have been receiving salaries and allowances under the same pay structure for nearly eleven years. “During this period, the cost of living has increased significantly due to inflationary pressures. In recognition of this reality, the government is announcing the implementation of a new pay structure for public employees beginning on 1 July 2026.