What are the allowance amounts under the new pay scale?
Government employees will not receive all allowances at the new rates immediately upon getting their increased salaries. Photo: Collected.
The government has issued the official gazette notification regarding the new salary and allowance structure for public servants. On Saturday, the Finance Division under the Ministry of Finance released the notification titled "Services (Salary and Allowances) Order, 2026."
Alongside the basic salary, the revised order recalculates various benefits, including medical, education, transport, and housing allowances.
Medical Allowance
For serving employees up to 50 years of age, the monthly medical allowance is set at Tk3,000, while those over 50 will receive Tk4,000 per month until the conclusion of Post-Retirement Leave (PRL). Retirees receiving pensions will be eligible for a monthly medical allowance of up to Tk 6,000, depending on age.
Festival and Cultural Allowances
All employees will continue to receive an annual Bengali New Year (Pohela Boishakh) allowance equal to 15 percent of their basic salary. Regular annual festival, rest, and recreation allowances remain as previously established. Retirees and lifelong family pension holders will receive two festival allowances per year equal to their net pension. Similarly, pensioners who surrendered 100 percent of their pension will receive two annual festival allowances computed on their net pension basis.
House Rent Allowance
House rent allowances have been structured according to job grade and location:
Grades 16 to 20: Employees stationed within Dhaka North and Dhaka South City Corporation areas will receive up to 60 percent of their basic salary. For other divisional cities, Savar, and Cox's Bazar, the rate is set at 50 percent, and 45 percent for all other locations.
Senior Grades: Senior officers in top-tier grades will receive house rent allowances ranging between 25 and 45 percent based on official rank.
Education Support Allowance
Government employees will receive an education support allowance of Tk500 per month per child, up to a maximum of BDT 1,000 for two children, applicable until the child reaches 23 years of age. For children with special needs or disabilities, a special allowance of Tk3,000 per month will be provided per child, up to a maximum of two children.
Travel Allowance
No immediate changes have been introduced regarding travel allowances. Existing rules and entitlements for travel allowances will remain in force until further notice. However, the Finance Division will later review field-level requirements and issue a separate order to revise travel allowance rates. Under the current rules, officials and employees continue to receive travel expenses, daily allowances, and accommodation benefits based on rank and pay scale during official travel.
Employees in Grades 11 to 20 will receive a monthly tiffin allowance of Tk 500 and a monthly conveyance allowance of Tk 600 if posted within city corporation areas. Mobile allowances have been set at Tk 500 per month for Grade 5 and above officers, and Tk150 for Grade 6 to Grade 20 employees. Staff in designated roles will receive a monthly washing allowance of Tk 300.
According to the notification, the Cabinet Secretary or Principal Secretary will receive an entertainment allowance of Tk 2,000 per month, Secretaries Tk1,000, Additional Secretaries Tk900, and Joint Secretary-rank officers Tk 600.
Employees performing current or additional duties will receive a monthly charge allowance of Tk 1,500. Instructors in Grade 9 or above working in training institutions will receive a deputation allowance equal to 10 percent of their basic salary. Those working in hilly areas will get a hill allowance of 20 percent of basic pay up to a maximum of Tk 5,500, while staff posted in haor or char areas will receive an allowance capped at Tk 5,000.
Additionally, risk allowances and special benefits remain intact under previously issued memorandums for personnel serving in high-risk duties such as the Special Response Battalion (SRB), Ansar, Fire Service, Coast Guard, ACC, and prisons.
For personnel serving in special agencies—including NSI, DGFI, SSF, and PGR—a provision has been included to add an extra 20 percent on top of their existing allowance amounts.
Allowances Not Effective Immediately
Under the new notification, government employees will not receive all the revised allowances immediately alongside their increased basic salaries; rather, these allowance benefits will take effect in phases after a specified period.
Paragraph 1(3)(j) of the notification states that from July 1, 2026, to December 31, 2027, all types of allowances will continue to be paid under the existing framework.
The revised allowance rates under the new scale will come into force on January 1, 2028. Consequently, while government employees will receive their enhanced basic salaries along with arrears from July 1, 2026, the old rates will remain in effect for allowance calculations until then.
