Special allowances for government employees to increase

The government has decided to raise special allowances for public servants and pensioners. Under the revised scheme, active government employees will receive a minimum increase of Tk 1,500, while pensioners will get at least Tk 750.

Following Finance Adviser Salehuddin Ahmed’s budget announcement, the Finance Division is amending its earlier circular issued on 3 June. The proposal was approved on Sunday at a meeting of the Advisory Council held at the Chief Adviser’s Office.

Finance Secretary Khairuzzaman Mozumder confirmed that the minimum allowance, initially set at Tk 1,000 for serving employees and Tk 500 for pensioners, has been revised upwards.

The special allowance will apply to government, autonomous, state-owned agencies, banks, insurance firms, BGB, and police from 1 July 2025. However, employees on unpaid leave or those not eligible for pension restoration will be excluded. Social security sector allocations were also raised by Tk 100 billion to a total of Tk 912.97 billion for FY26. In FY25, the allocation was Tk 904.68 billion.