Play store
Major changes are being introduced to the salaries, allowances and other benefits of government employees under the new pay structure. House rent, medical, transport, tiffin and mobile allowances are set to increase. A new allowance has also been proposed for employees with children with special needs or disabilities. Risk and special allowances are also expected to rise, while the Bengali New Year allowance will be reduced.
The new pay structure was recently approved by the Cabinet. Under it, the basic salaries of government officials and employees will increase by 100% to 142%. The revised basic salaries and net pensions will be implemented in three phases between July 1 this year and July 1, 2027. Various allowances will come into effect from January 1, 2028.
The Finance Division is working on issuing the gazette notification for the new pay structure. The notification is expected to be sent to the Law Ministry soon for vetting.
The following benefits are set to change under the new structure:
1. Higher house rent allowance
The house rent allowance in Dhaka city corporation areas will be raised to a maximum of 60% of basic salary. In other city corporation areas and Savar, it will be up to 50%, while employees in other areas will receive up to 45%, depending on their grade.
2. Medical allowance to increase with age
The medical allowance will rise with age. Employees up to 50 years of age will receive Tk3,000 per month, those above 50 and up to 60 will receive Tk4,000, those above 60 and up to 70 will receive Tk5,000, and those above 70 will receive Tk6,000.
3. Higher salary increments for lower grades
The annual salary increment rate will be comparatively higher for lower-grade employees. Employees in Grade 6 and below will receive a 5% increment, while the rates will be 3.5% for Grades 3 and 4 and 2.75% for Grade 2.
4. Mobile allowance for all grades
Employees of all grades will receive a mobile allowance. Employees in Grade 5 and above will receive Tk500, while those in Grade 6 and below will receive Tk150.
5. Transport allowance to double
The transport allowance will be doubled from the current Tk300 to Tk600. The tiffin allowance will rise from Tk200 to Tk500, while the washing allowance will increase from Tk100 to Tk300.
6. New allowance for children with disabilities
A new monthly allowance of Tk3,000 has been proposed for employees who have children with special needs or disabilities. The benefit will cover a maximum of two children.
7. Bengali New Year allowance to be reduced
The Bengali New Year allowance will be cut under the new pay structure. It is currently paid at 20% of basic salary, but will be reduced to 15%.
8. Higher risk and special allowances
A deputation allowance for employees posted to training institutions has been set at 10% of basic salary. Risk and special allowances have also been proposed to increase by up to 20% in certain cases. However, education assistance, charge, entertainment and festival allowances will remain unchanged.
9. Special allowance for hilly and remote areas
Government employees working in hilly areas will receive an allowance equivalent to 20% of their basic salary. The maximum amount will be Tk5,000 in district headquarters and upazila headquarters in the hill districts, and Tk5,200 in other hilly areas.
Meanwhile, employees working in haor, island and char areas will continue to receive an allowance equivalent to 20% of their basic salary. However, the maximum amount will be capped at Tk5,000.
10. Changes to pensions and gratuity
As an initial step toward implementing the “one grade, one pension” system, new limits have been set for net pensions. Under the new structure, the minimum net pension will be Tk10,000 and the maximum Tk70,200.
11. Higher allowances for armed forces
Various allowances for officers and members of the armed forces will also be revised. A 10% increase has been proposed on the existing amounts of most allowances, including defence allowance, kit allowance, danger money, interpreter allowance and teaching allowance.
