Contractual Employees to Get Salary Under New Pay Scale

The Finance Division of the Ministry of Finance has issued a new circular determining the salary and allowances for government employees on contractual appointments, aligning them with the National Pay Scale-2026. Effective from July 1 of this year, this decision aims to standardize compensation for individuals appointed on a contractual basis across various civil posts, including government institutions, autonomous bodies, state-owned banks, and financial institutions, in the public interest.

Under the new regulations, employees appointed on a contractual basis before July 1, 2026, under the National Pay Scale-2015 will have their salaries transitioned to the new scale, subject to contract amendment. Their salaries will be determined based on the relevant grade and step from July 1, alongside increased rates and applicable allowances. However, the circular explicitly states that the benefit of annual salary increments will not be applicable to these cases.

For individuals appointed to contractual posts on or after July 1, 2026, the basic salary will be fixed at the grade and step they were entitled to receive immediately before retirement. In special cases, the salary determined by the government or stipulated in the mutually agreed contract will apply. Furthermore, designated pensions and special additional pensions will not be deducted from the fixed contractual salary, though no increments, gratuity, or enhanced pensions will be provided for the contractual tenure.

For non-retired government employees appointed on a contractual basis, salary and allowances will be determined by assessing qualifications and merits through coordination between the Ministry of Public Administration and the Finance Division. Additionally, all previous orders inconsistent with the new circular are deemed canceled, while consistent prior instructions and future government orders regarding salary and allowances will remain fully in force.