Govt employees, pensioners, MPO teachers get 5% special incentive

The government has decided to disburse a 5% incentive – minimum Tk1,000 per month – for employees of military and civilian government organisations, self-governing and state-owned institutions, banks, financial institutions, police, Border Guard Bangladesh, and teachers and staff under monthly pay order.

For the government pensioners, the special incentive announced by Prime Minister Sheikh Hasina will be a minimum of Tk500 per month, according to notifications issued by the finance ministry on Tuesday.

The special allocation came into effect on 1 July, according to a finance ministry notification.

The number of employees of military and civilian government organisations, self-governing institutions, state-owned companies and law and order forces in the country is about 15.54 lakh. The number of teachers and staff under monthly pay orders is about 4.5 lakh. The government will spend about Tk3,000 crore annually to provide the special benefits to them at fixed rates.

Government employees will get special pay at the rate of 5% on basic salary payable. As a result, their basic salary or house rent allowance, festival allowance and other allowances will remain unchanged. Pensioners, including the reinstated ones, will enjoy the same rate on net payable pension.

Besides, government employees on post-retirement leave are entitled to special benefits at a similar rate based on their basic pay last drawn prior to the ongoing post-retirement leave, the finance ministry notice said.

The finance ministry notification further said suspended employees will be entitled to the special benefit at a rate of 5% on 50% of their basic pay immediately preceding the date of suspension.

Employees will not get the benefit while on leave without pay. Moreover, the benefit will not be applicable to retired employees who have withdrawn 100% of their gross pension.

In case of contractual appointment under the national pay scale, the incentive will be given based on their basic pay.  If such contractual employee is a pensioner, they shall be entitled to this benefit either on the basis of net pension or his basic pay.

Apart from the organisations managed by funds from the government's revenue budget, other organisations will have to bear the necessary expenses for providing the special benefits from their respective funds.

Considering high inflation, Prime Minister Sheikh Hasina last month instructed Finance Minister AHM Mustafa Kamal to pay 5% of basic salary, as a special incentive, to government employees and pensioners.

As per the prime minister's recommendation, it has been calculated that the 11th-grade employees will get an incentive of Tk625 per month.

The incentive will be Tk565 in the 12th grade, Tk550 in the 13th grade, Tk510 in the 14th grade, Tk485 in the 15th grade, Tk465 in the 16th grade, Tk450 in the 17th grade, Tk440 in the 18th grade, Tk425 in the 19th grade, and Tk412.50 in the 20th grade.

The first grade government employees will get an additional incentive of Tk3,900 as 5% of the basic salary of Tk78,000.

The basic salary in the second grade starts at Tk66,000. At this stage, the final basic salary with a 5% annual salary increase every year stands at Tk76,490. Based on the starting basic salary, the incentive for these employees will be Tk3,300. If the last basic salary is taken as the basis, the incentive will be Tk3,825.

In addition, according to the starting basic salary of the third grade of Tk56,500, the incentives will be Tk2,825.

The incentive will be Tk2,500 in the fourth grade, Tk2,150 in the fifth grade, Tk1,775 in the sixth grade, Tk1,450 in the seventh grade, Tk1,150 in the ninth grade, and Tk1,100 in the ninth grade.