Max 20% dearness allowance greenlit for govt employees
Now, once the dearness allowance is implemented, the 5% special incentive introduced in FY2023-24 will be discontinued
The interim government has set a 15% dearness allowance for government officials in grades 1 to 9, and 20% for those in grades 10 to 20, with the benefit effective from 1 July.
Earlier, before presenting the Tk7,89,999 crore budget for FY2025-26 today (2 June), Finance Adviser Salehuddin Ahmed had said dearness allowance for government employees was being actively considered in the budget.
Since 2015, government employees have been receiving an annual 5% increment in salary. Ahead of the last national election, from July 2023, the Awami League government introduced an additional 5% special incentive, alongside the annual increment.
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Now, once the dearness allowance is implemented, the 5% special incentive introduced in FY2023-24 will be discontinued.
According to a finance ministry official, the government's total outlay will increase by nearly Tk7,000 crore due to this move.
Ministry officials said the budget allocation for salaries and allowances typically increases by 6%-8% annually. Based on this, the allocation for FY26 could reach approximately Tk89,500 crore.
If the dearness allowance is added, the total expenditure could potentially rise to a maximum of Tk96,000 crore.
