Online Report
The government has introduced a special allowance for government employees and pensioners, set to take effect from July 1, as per a circular issued by the Finance Division on Tuesday.
Under the new scheme, government staff in Grades 1 to 9 will receive a 10% special allowance, while those in Grades 10 to 20 will be entitled to 15%.
However, the minimum allowance has been fixed at Tk 1,000 for serving employees and Tk 500 for eligible pensioners.
The allowance will cover civil servants under the national pay scale, as well as employees of autonomous and state-owned entities, banks, insurance and financial institutions, and members of BGB and the police. Pensioners whose pensions have been restored will also be included in the benefit.
The initiative was first announced by Finance Adviser Dr Salehuddin Ahmed in his FY2025–26 budget proposal delivered on Monday. Citing the absence of any revised pay structure since 2015, Dr Ahmed said the measure aims to partially address the growing financial strain on public employees.
Though long-discussed dearness allowances were not introduced by name, the special allowance appears to serve as a temporary alternative.
“We are seriously considering a dearness allowance,” Dr Ahmed told reporters earlier. “A committee is already working on it, and while it’s a real possibility, more time is needed.”
According to the circular, employees on post-retirement leave (PRL) will be eligible based on their last drawn basic salary before PRL. Pensioners with reinstated pensions will receive the benefit calculated on their existing pension grade.
However, retired employees who opted for a one-time pension gratuity and are not yet reinstated, as well as those currently on unpaid leave, will not qualify for the allowance.