Govt employees likely to get special allowance instead of dearness allowance

Finance adviser Salehuddin Ahmed has proposed increasing special incentives for the government employees while unveiling the national budget for 2025-26 financial year.

“I would like to mention that as no pay scale has been declared after 2015, I propose to increase special benefit for the government employees in the budget of FY2025-26,” the adviser said in his budget speech on Monday.

The issue of dearness allowance has been discussed for a long time. The finance adviser told the newspersons, “We’re actively considering the issue of dearness allowance and have given the responsibility to a committee. They are working on it now. The possibility of paying dearness allowance is fair, maybe it would take some time.”

However, the adviser did not say anything about dearness allowance in his budget speech. In fact, he never clearly spoke anything about dearness allowance.

The current pay scale of the government employees was implemented on 1 July 2015. Since then they have been getting an annual increment of 5 per cent.

From 1 July 2023, the government employees have been receiving a 5 per cent special incentive due to inflation. The amount of that special incentive could be increased this year.

The government is thinking of a 15 per cent incentive for its officials and employees in grades 10 to 20, and a 10 per cent allowance for those in grades 1 to 9.

Prothom Alo talked to several top officials of the finance ministry after the finance adviser’s budget speech. The finance division hinted that there could be nothing announced in the name of “dearness allowance”. Instead, some money is likely to be added with the current special incentive.

The officials, however, said the chief adviser will give the final decision on dearness allowance, maybe after the Eid-ul-Azha.

The Bangladesh Nationalist Party (BNP) and Centre for Policy Dialogue opposed the initiative.

BNP secretary general Mirza Fakhrul Islam Alamgir on 18 January this year said, “Inflation rate will rise if dearness allowance is paid at this time.”

Later on 27 May, CPD director Fahmida Khatun asked, “Is it (dearness allowance) being given to please the government employees?”