Starting July 1, the government updated pay and perks for temporary contract workers. This covers roles in public departments, self-governing agencies, state banks, and financial entities. The change is part of the National Pay Scale 2026 rollout.
A directive from the Ministry of Finance’s Finance Division, released on October 28, details the new rules for calculating pay, benefits, and additional perks for contract-based employees.
Revised Provisions
Contractual officials appointed under different grades of the National Pay Scale 2015 before July 1, 2026, whose contracts remain valid beyond that date, will receive salaries under the corresponding grades and steps of the National Pay Scale 2026 from July 1. Their existing contracts may be amended.
They will also receive salaries at the revised rates under paragraphs 1(3)(Ka), 1(3)(Kha), 1(3)(Ga), excluding annual increments, and concerned sub sub-section of 1(3) of the Service (Pay and Allowances) Order, 2026. Applicable allowances from their government contracts remain unchanged.
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Contractual Appointments After July 1, 2026
For those appointed or to be appointed on a contractual basis after July 1, 2026, the government will determine their contractual salaries based on the corresponding grade and step of the National Pay Scale 2026 under which they would have drawn their basic salaries immediately before retirement, subject to amendments to existing contracts, where applicable.
These new employees will start receiving the updated wages and benefits from their official joining date, following the terms of the Service (Pay and Allowances) Order 2026.
However, in special cases, the government may determine the salary separately, or the salary may be fixed through a contract agreed upon by both parties.
The notification clarified gross pension for a contractual appointee. This includes pension calculated before commutation or surrender. Any special additional pension will not be deducted from the contractual salary.
It also stated that contractual service will not entitle an appointee to any increment, gratuity or enhanced pension.
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For contractual appointments of persons other than retired government employees, the Ministry of Public Administration and the Finance Division will determine salary, allowances and other contractual terms on a case-by-case basis, considering the merits of each case.
The authorities will coordinate to finalise the terms before executing the relevant contracts.
The notification further stated that the relevant provisions of all previous orders, memorandums and instructions inconsistent with the new notification would stand cancelled, while earlier instructions consistent with it would remain in force. It added that subsequent government orders issued from time to time would apply to salaries, allowances and other benefits payable under contractual agreements.
Joint Secretary Sharif Nazrul Islam signed the notification on behalf of the President. The Finance Division issued it, canceling the earlier notification dated January 26, 2016. The new provisions are effective from July 1, 2026.
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