5pc incentive for govt employees likely to continue in FY25

Upcoming budget of 2024-25FY

The government employees are likely to receive a 5 per cent special incentive on their basic salary in the upcoming fiscal year 2024-25, in addition to their regular 5 per cent annual increment.  

Multiple officials of the finance ministry revealed it to Prothom Alo, saying that the existing 5 per cent special incentive will remain unchanged in the next fiscal year. 

The budget for the fiscal year 2023-24 initially allocated Tk 804.63 billion for salaries and allowances of government employees, and it was later revised down to Tk 774.89 billion

Finance Minister Abul Hassan Mahmood Ali is scheduled to present the national budget before the parliament on 6 June. 

On the condition of anonymity, two officials disclosed that there have been discussions on continuation of the 5 per cent incentive for the government employees. If everything goes on the current track and the prime minister approves, the incentive is likely to remain unchanged in the next fiscal year. 

Following the announcement of the outgoing budget, the government issued a notification on 18 July 2023, announcing that the serving officers would receive special benefits at a rate of 5 per cent on their basic salary due on 1 July. 

The budget for the fiscal year 2023-24 initially allocated Tk 804.63 billion for salaries and allowances of government employees, and it was later revised down to Tk 774.89 billion. 

In the fiscal year 2022-23, the actual spending on salaries and allowances amounted to Tk 638.51 billion, up from Tk 628.56 billion in 2021-22 and Tk 616.72 billion in 2020-21.