MPO-listed teachers’ house rent allowance to increase by 15pc, implementation in 2 phases

The government has decided to raise the house rent allowance for teachers and employees of non-government educational institutions under the MPO (Monthly Pay Order) scheme by 15 per cent of their basic salary.

The increase will be implemented in two phases — the first 7.5 per cent will take effect from 1 November 2025, and the remaining 7.5 per cent from 1 July 2026.

The Ministry of Finance officially communicated this decision to the Ministry of Education today, Tuesday (21 October 2025).

Earlier, the government had approved an increase of only 5 per cent (with a minimum of Tk 2,000) in house rent allowance for MPO-listed teachers and employees. However, this proposal was rejected, and the teachers continued their protests.

Since 12 October, MPO-affiliated teachers and staff have been staging demonstrations with a three-point demand, one of which was the raise of their house rent allowance.

In a press release, the Ministry of Education described today’s development as “truly historic” for the education sector.

“From 1 November this year, MPO-listed teachers and employees will receive a 7.5 per cent increase in house rent allowance (minimum Tk 2,000), followed by another 7.5 per cent increase from July 2026 — making a total rise of 15 per cent,” the statement read.

Education adviser professor CR Abrar expressed his satisfaction at the outcome, saying that as a teacher himself, he felt fortunate to have been able to ensure the allowance increase as demanded by the teachers.

“Teachers deserve greater respect, and the state must remain committed to improving their quality of life,” he added.

The adviser noted that the process was not an easy one, as it involved “differences of opinion, debate, and criticism.”

He said the education ministry deliberately refrained from reacting to controversies and instead continued to work steadily toward a fair and sustainable solution.

CR Abrar emphasised that both the ministry and his advisory team worked tirelessly with various ministries, advisory councils, and the chief adviser to ensure that teachers’ voices were heard and understood.

The ministry described the development as a collective success, not an individual victory.

“The teachers’ movement made their reality clear, and the government responded responsibly. Together we have reached a stage where respect, dialogue, and understanding have prevailed. Now it is time to return to the classrooms — to the students, to the real place of work,” the statement continued.

It concluded with an appeal for mutual respect and renewed dedication to quality education. “Let this understanding mark a new beginning — built on mutual respect, comprehension, and a shared commitment to strengthen the foundations of education. Through mutual respect and the spread of quality education, we can elevate Bangladesh to a position of true dignity.”

Until now, MPO-listed teachers and employees had been receiving Tk 1,000 per month as house rent allowance. On 30 September, the finance division had approved a modest increase of Tk 500, but the Ministry of Education withheld implementation in light of the teachers’ ongoing movement.

Instead, the ministry proposed a percentage-based increment and sent a revised plan to the Finance Division, outlining four possible options — 5 per cent, 10 per cent, 15 per cent, and 20 per cent — with corresponding cost estimates.

Based on the government’s fiscal capacity, the Finance Division later approved the 15 per cent increase, to be executed in stages.

Despite the earlier 5 per cent increase offer, the teachers had persisted with their movement, which has now culminated in a more substantial and structured adjustment to their housing allowance.