The National Pay Commission (NPC) has made an initial estimate suggesting that implementing the forthcoming government pay scale could require around Tk 700 billion in additional annual expenditure, including higher allocations for pensions, gratuities, and medical allowances.

The projected figure, equivalent to nearly three months of the government’s total tax revenue collection, is almost double the current allocation for salaries and allowances in the last fiscal year.

NPC officials described the amount as a “ballpark figure” based on preliminary assessments and pay hike demands raised by government employees after nearly a decade. They said the figure could change once recommendations are compiled from ongoing stakeholder consultations.

Economists noted that the cost could reach this level if the new pay structure includes salary adjustments for MPO-listed teachers and state-owned enterprise officials, and expanded pension and gratuity coverage for about 2.5 million government employees.

However, finance ministry officials have expressed concern over the estimate, calling it overly ambitious and difficult to sustain given the government’s current fiscal constraints.

The National Pay Commission 2025, formed in July, is expected to submit its report to the chief adviser by 15 December 2025, following the completion of stakeholder consultations by the end of November.