House rent for MPO teachers raised by Tk500

Highlights:

• House rent allowance raised by Tk500 for MPO teachers
• New monthly allowance fixed at Tk1,500 flat rate
• Education ministry proposed percentage-based allowance, minimum Tk2,000
• Finance ministry approved increase citing commuting teachers' limited need
• 3,98,068 teachers, staff receive allowance; annual cost Tk470 crore
• Festival bonus raised from 25% to 50% of salary

The finance ministry has approved a proposal to increase the house rent allowance of MPO-listed school and college teachers and staff by Tk500. From now on, these teachers will receive Tk1,500 per month as house rent allowance.

Currently, MPO-listed teachers receive Tk1,000 per month as house rent allowance. The education ministry had sent a proposal to the finance ministry suggesting that the allowance be fixed as a percentage of the basic salary instead of a flat rate. The proposal set the minimum allowance at Tk2,000 and suggested house rent allowance ranging from 5% to 20% of the basic salary.

An official of the finance ministry told TBS yesterday that most MPO-listed school and college teachers commute from their own homes, so they do not have much need for house rent allowance.

"Still, taking into account the education ministry's proposal, finance adviser Dr Salehuddin Ahmed has approved the summary to increase everyone's allowance by Tk500 instead of setting it as a percentage of the basic salary," the official said.

Across the country, there are 3,98,068 MPO-listed school and college teachers and staff. At the current rate of Tk1,000, the government spends about Tk470 crore annually on their house rent allowance. Of this, Tk357 crore goes to school teachers and staff, while Tk112 crore goes to college teachers and staff.

Finance division officials said MPO-listed teachers previously received 25% of their basic salary as festival bonus. Recently, it has been raised to 50%, which will add Tk229 crore in annual government expenditure.

Referring to the new pay scale implementation and the added burden of salaries and allowances for MPO-listed teachers and staff as a source of stress for the finance ministry, finance adviser Dr Salehuddin Ahmed said on Tuesday, "My biggest concern is the implementation of the new pay scale and the extra pressure of salaries and allowances for MPO-listed teachers."

He added, "Although the new pay scale will be effective from March-April, the additional salaries up to June will have to be arranged from the current budget. Besides, the government has recently brought a large number of educational institutions under the MPO scheme, which also requires funds to pay the salaries and allowances of their teachers."