New Pay Rules Set for Contractual Government Employees Under Ninth Pay Scale

The government has introduced new rules for determining the salaries, allowances and other benefits of government officials and employees appointed on a contractual basis under the new national pay scale, known as the Ninth Pay Scale. Separate provisions apply to those appointed before and after July 1, 2026. According to a Finance Division notification, the rules took effect on July 1, 2026.

The Finance Division of the Ministry of Finance issued the notification on Wednesday, October 28. It outlines the government's decisions on pay, allowances and other benefits for people appointed on a contractual basis in public-interest roles across government and autonomous bodies, state-owned banks and financial institutions, and other civilian posts of the Republic. The notification was signed by Finance Division Joint Secretary Sharif Nazrul Islam.

Pay for those appointed before July 1, 2026

The notification says that people appointed on a contractual basis in different grades under the 2015 national pay scale before July 1, 2026, whose contracts remain in force beyond that date, will have their salaries recalculated under the new national pay scale, subject to amendments to their contracts.

Their salaries will be redetermined from July 1 according to the relevant grade and step. They will receive the increased pay in line with the provisions of the Service (Pay and Allowances) Order, 2026. However, they will not be entitled to annual increments. Other allowances payable under their contracts will continue to apply.

Pay for those appointed after July 1

For people appointed, or to be appointed, on a contractual basis after July 1, 2026, salary determination will take into account the grade and step of their basic pay under the national pay scale immediately before retirement. The contractual post's salary must be determined by reference to the corresponding grade and step under the new pay scale. Existing contracts must be amended where necessary.

From their contractual joining date, they will receive the increased pay and applicable allowances under the prescribed rules. In special cases, however, the salary set by the government—or the salary specified in a contract by mutual agreement between the government and the appointee—will be treated as final.

The notification further states that the appointee's total pension, calculated before commutation or surrender, and any special additional pension will not be deducted from the salary fixed for contractual employment.

No increments, gratuity or enhanced pension

The notification specifies that contractual service will not qualify for increments or annual pay increases, gratuity, or an enhanced pension.

For contractual appointments involving people who are not retired government employees, pay, allowances and other terms will be determined by considering the qualifications and circumstances of each appointment. The contract must be prepared in coordination between the Ministry of Public Administration and the Finance Division.

The notification also states that provisions in earlier orders, memoranda and instructions that conflict with the new rules will be considered cancelled. Earlier instructions consistent with the new notification will remain in force. Any subsequent government orders on pay and allowances will also apply to contractual appointments.

The new notification replaces an earlier Finance Division notification issued on January 26, 2016.