Controversial pay hike proposal submitted amid pre-election tensions

The Jamaat-controlled interim government led by Prof. Muhammad Yunus has received a sweeping proposal for salary increases for public servants in a blatant attempt to sway the results of the upcoming national elections.

The Ninth National Pay Commission submitted its report on Wednesday, recommending hikes of up to 147%, amid accusations that the timing is designed to manipulate voter sentiment in favour of the current regime.

The report, handed over at the State Guest House Jamuna, proposes a dramatic overhaul of the pay structure for government employees, maintaining a 20-grade system. Key recommendations include raising the minimum basic salary from Tk8,250 to Tk20,000 at the lowest grade and boosting the maximum from Tk78,000 to Tk160,000 at the top. Additional perks outlined in the document encompass a jump in the Bengali New Year (Baishakhi) allowance from 20% to 50%, expanded transport allowances for grades 10 to 20, and substantial pension increasesโ€”up to 100% for those receiving less than Tk20,000 monthly.

Commission Chairman Zakir Ahmed Khan, a former finance secretary, defended the proposals, citing a decade of economic shifts, including soaring inflation and rising costs of essentials that have eroded real incomes. “The lack of timely revisions has made it difficult for public servants to cope,” Khan stated during the handover ceremony. The commission, formed on July 27, 2025, with a six-month deadline ending February 14, 2026, completed its work ahead of schedule using only 18% of its allocated budget. It consulted 2,552 stakeholders through 184 meetings and an online survey of 236,000 participants.

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Chief Adviser Yunus, receiving the report alongside Finance Adviser Dr Salehuddin Ahmed and other officials, hailed it as “creative and comprehensive,” noting it addressed long-overdue reforms. However, the early submissionโ€”precisely timed amid an economic crisis marked by high inflation, private sector job losses, factory closures, and reports of unchecked lootingโ€”has fueled allegations of electoral manipulation. Opponents argue the proposals ignore the broader fiscal distress, where the government’s revenue collection is at historic lows, debt burdens are mounting, and borrowing is increasingly used to service existing loans.

In an op-ed published today, economist Towfiqul Islam Khan of the Centre for Policy Dialogue questioned the feasibility of the hikes, estimating a Tk106,000 crore implementation cost without a clear fiscal roadmap.

“The government’s financial capacity is like a lower-middle-class household headโ€”sincere but lacking means,” Khan wrote, warning that funding through further borrowing could exacerbate inflation and crowd out private investment. He criticised the interim administration for pushing such a decision at the end of its term without consulting political parties, suggesting it burdens the incoming elected government.

The regime, which assumed power following controversial circumstances, has faced ongoing accusations of being unconstitutional and influenced by a Jamaat-Yunus alliance. Critics claim the pay boost is a calculated ploy to secure loyalty from public servants, a key voting bloc, while disregarding the economic downturn. Proponents, however, maintain it’s a necessary adjustment after 12 years without revision, since the 8th Pay Commission in 2013.

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Finance Adviser Ahmed indicated the next steps include forming a committee to evaluate funding and feasibility. Additional reforms in the report propose health insurance for employees, enhanced medical allowances for pensioners, and restructuring of the Government Employees Welfare Board.

As elections approach, political parties are urged to address the issue in their manifestos. Khan advocated for a phased implementation tied to improved public servant productivity and fiscal health, emphasising accountability. With the nation’s economy in flux, the proposal has ignited debate over whether it’s genuine reform or pre-election populism.

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