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Finance Advisor Salehuddin Ahmed has not made any clear statements on a dearness allowance for government workers, but has proposed an increase in the “special benefits” they are entitled to.
He raised the issue during his speech presenting a Tk 7.9 trillion budget for the 2025-26 fiscal year on Monday.
“In this context, 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,” he said.
The matter of a dearness allowance—a cost-of-living adjustment that increases the basic pay of government workers in line with inflation—has been a subject of debate since the interim government took power.
The finance advisor raised the matter himself on May 20, saying: “We are actively considering the matter of dearness allowance. A committee has been tasked with working on it. There’s a fair chance it will happen, but it may take some time.”
The budget speech did not discuss a dearness allowance and it was unclear what “special benefits” government employees will receive.
However, a cadre official in the Bangladesh Civil Service said: “Some additional amount could be included in the regular 5 percent increment. But I cannot say when that additional portion will be added.”
“The government can start paying it in July, but it could also take some time. Still, the 5 percent increment will be added automatically.”
According to the rules, a new pay scale structure must be formed for government employees every five years. However, the last time one was introduced was 2015.
After the interim government took charge, the issue of a dearness allowance for government employees was raised in September and October last year. However, due to the government’s financial constraints, that discussion did not go far.
Political parties also opposed it.
On Jan 18, BNP Secretary General Mirza Fakhrul Islam Alamgir said: “Giving dearness allowance to government officials and employees under the current circumstances will undoubtedly create problems.”
“A dearness allowance at this time will increase inflation. But the income of the common people is not increasing. This is a problem. These issues are not very necessary at the moment.”