Minimum net pension set at Tk 10,000 under revised 2026 pay order

The government has fixed the minimum monthly net pension at Tk 10,000, raising existing pensions by 55 to 100 percent.

It has amended the Service (Pay and Allowances) Order, 2026 to set pension, gratuity and lump grant for government employees.

The Finance Division made the change on Wednesday, effective from Jul 1 this year.

Anyone receiving a monthly net pension or family pension before Jul 1, 2026 will get a new rate based on what they drew up to Jun 30.

Pensioners on up to Tk 9,000 get a 100 percent rise, taking them to between Tk 10,000 and Tk 18,000.

Those on Tk 9,001 to Tk 20,000 get 75 percent more, ending up with Tk 18,001 to Tk 35,000.

The rise is 65 percent for Tk 20,001 to Tk 30,000, lifting them to between Tk 35,001 and Tk 49,000.

Pensions of Tk 30,001 to Tk 40,000 go up 60 percent, to between Tk 49,001 and Tk 62,000. Those on Tk 40,001 or above get 55 percent more, or Tk 62,001 to Tk 70,200.

Anyone already drawing more than Tk 70,200 a month stays on the current rate until the annual increment takes effect on Jul 1, 2027. Fractions will be rounded up.

Employees whose post-retirement leave began on or before Jul 1, 2026 and is still running will get leave pay and allowances, with special benefits, under the National Pay Scale, 2015.

Their net pension and gratuity will be set under the 2026 scale once the leave ends.

Those going on leave from Jul 2 will get leave pay, allowances, net pension and gratuity under the 2026 scale.

Employees who retired on Jun 30 and began leave on Jul 1 will receive a lump grant equal to 18 months’ basic pay, subject to leave entitlement, based on the basic pay fixed at retirement under the 2015 scale.

For leave starting Jul 2 or later, the same grant will be based on the 2026 scale.

Even if phased pay rollout means an employee draws less basic pay for now, net pension, gratuity and lump grant will be worked out on the fixed basic pay.

The full gratuity and lump grant will be paid in one go.

The order requires the recalculation of any net pension, gratuity or leave encashment claim settled under the 2015 pay scale between Jul 1 this year and the date the 2026 national pay scale was issued.

Any additional amount found payable after the recalculation will be paid to the recipient.

If a principal pensioner has more than one family pension beneficiary, the net pension and festival allowances payable to the principal pensioner will be used as the basis for distributing the benefits proportionately among the beneficiaries in accordance with the rules.

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