Summary:
- The Bangladesh government has announced a dearness allowance for all government employees, including pensioners, to provide additional financial support amid high inflation.
- Senior Secretary Md Mokhlesur Rahman stated that the allowance will be distributed based on the pay scale, from the lowest to the highest positions.
- A committee has been formed to oversee the implementation of this allowance and will make necessary recommendations.
- This initiative comes as a response to economic challenges, with no new pay scale planned despite ongoing inflationary pressures.
The government of Bangladesh has announced the introduction of a new allowance for its public sector employees, known as the dearness allowance, amidst ongoing economic challenges. This decision was unveiled by Dr. Mokhlesur Rahman, Senior Secretary of the Ministry of Public Administration, during a press conference held on Sunday. The allowance aims to provide financial relief to government officials and employees, including those on post-retirement leave (PRL), in response to the country’s high inflation rates.
The announcement comes at a time when Bangladesh is grappling with significant economic pressures, including inflation that has exceeded 9% for over two years. The Bangladesh Bureau of Statistics recently reported a food inflation rate of 13.80% in November, highlighting the urgency of government intervention to support its workforce. Despite these challenges, the government has decided against implementing a new pay scale, opting instead to offer the dearness allowance as an immediate measure.
A committee has been established by the Ministry of Finance to determine the percentage of this allowance, which will be applicable across all levels of government employees, from secretaries to office assistants. The committee’s recommendations will be submitted to the Chief Advisor, and once approved, an official notification will be issued promptly.
This initiative is part of a broader strategy to mitigate the impact of inflation on public sector employees without altering the existing pay scale introduced in 2015. The government had previously planned a 20% dearness allowance in the 2023-24 fiscal budget but instead implemented a 5% increase in basic salaries for certain grades. This adjustment resulted in salary increases ranging from 412 to 800 BDT for employees in grades ten to twenty.
The decision has been met with appreciation from various employee associations. The Bangladesh Secretariat Officers and Employees United Council expressed gratitude towards the government for its efforts to alleviate financial burdens on public servants. However, challenges remain as nearly 1.45 million government employees continue to face rising living costs without a new pay scale since 2015.
The dearness allowance is designed to address these challenges by providing additional financial support without affecting other allowances such as housing or transportation. This move reflects the government’s commitment to supporting its workforce amidst ongoing economic difficulties while maintaining fiscal responsibility.
Source: Samakal
