Govt considering dearness allowance for public employees in FY26: Salehuddin
According to Finance Division officials, government employees are likely to get up to 20% dearness allowance with effect from FY26.
The government is giving special consideration to whether public officials and employees will receive a dearness allowance in the upcoming fiscal year of FY2025-26, Finance Adviser Salehuddin Ahmed said today (20 May).
A committee is currently working on the matter, the adviser told reporters after a meeting of the Cabinet Committee on Public Procurement held at the Secretariat.
According to Finance Division officials, government employees are likely to get up to 20% dearness allowance with effect from FY26.
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The officials earlier told The Business Standard that a provision for this allowance is expected in the upcoming budget. Preparatory work on the proposal is already underway, with initial suggestions reaching as high as 20%.
The 5% special incentive, introduced during Sheikh Hasina's administration, will be discontinued when the dearness allowance is implemented. This change could result in an additional expenditure of around Tk7,000 crore on the salaries and allowances of government employees, as per the officials.
Following the fall of the Hasina government, a committee was established last December to consider providing a dearness allowance to alleviate the burden on government employees amid persistently higher inflation.
Proposals were formulated suggesting a 20% dearness allowance for civil servants in grades 10 to 20, and between 10% and 15% for those in grades 1 to 9.
