Govt to provide special allowance to employees and pensioners from July 1

Starting July 1, 2025, the government will introduce a special allowance for employees and pensioners in various sectors, including government and civil service, autonomous and state-owned institutions, banks, insurance and financial organizations, Border Guard Bangladesh (BGB), and the police force.

According to a circular issued on Tuesday (June 3) by Regulation Wing-3 of the Finance Division under the Ministry of Finance, all eligible in-service employees will receive a minimum of BDT 1,000, while pensioners will be entitled to at least BDT 500 as part of this special benefit.

Signed by Additional Secretary Dilruba Shahina on behalf of the President, the circular cites the authority of Section 15 of the Government Service Act, 2018. It outlines that from July 1, employees under the national pay scale in Grades 1 to 9 will receive a 10% allowance, while those in Grades 10 to 20 will receive 15%. This benefit also extends to reinstated pensioners.

The allowance will be paid as a fixed minimum of BDT 1,000 for current employees and BDT 500 for pensioners, regardless of the percentage-based calculation.