Budget FY 24-25: 5% incentive for government employees remains unchanged

In order to tackle the impact of rising inflation, the government announced annual special incentive benefits for government employees at the beginning of the current financial year.

Providing the incentive will continue in the next financial year also, said Finance Minister Abul Hasan Mahmood Ali while placing the budget for FY 24-25 at the Jatiya Sangsad on Thursday (June 6).

In other words, in the budget of the fiscal year 2024-25, the government employees will get an additional 5 percent of the basic salary in addition to the 5 percent general increment (annual salary increase).

Earlier in 2015, the government implemented a new pay scale for government employees by almost doubling the salary. As per the pay-scale, the government employees will get general increment at the rate of 5 percent of their basic pay on July 1 every year.

According to the proposed FY 24-25 budget, the allocation for the salaries and allowances of government employees is Tk 83,500 crore.

Compared to the allocation to this sector in the revised budget of the current financial year, it is about 7.76 percent or Tk 6,000 crore more. In the main budget of the current fiscal year 2023-24, the allocation for salaries and allowances of government employees was Tk 80,463 crore. However, in the revised budget, it was reduced to Tk 77,489 crore.

In the financial year 2022-23, the actual expenditure on salaries and allowances of government employees was Tk 63,851 crore. In the previous financial year (2021-22), the actual expenditure in this sector was Tk 62,856 crore. And in the fiscal year 2020-21, the actual expenditure on salaries and allowances of government employees was Tk 61,672 crore.