Bangladesh mulls dearness allowance as budget nears

Finance Adviser Dr. Salehuddin Ahmed on Tuesday (May 20) said the government is “actively considering” the introduction of a dearness allowance for public sector employees.

He, however, said final decisions might take some time with the national budget approaching while a dedicated committee has been tasked with examining the issue.

The adviser came up with the development while speaking to reporters after meetings of the Advisory Council Committees on Government Procurement and Economic Affairs at the Cabinet Division in Dhaka.

“We are working on it. The committee is evaluating the matter and will submit its findings to me. Only then will we move forward,” he said in response to a question on whether a dearness allowance would be included in the upcoming budget.

When asked about the likelihood of implementation, he said, “There is a fair chance, but it will take time. The budget is coming up. I will need to assess when we can start payments and how much we can afford.”

He declined to specify an amount, saying, “If I say the amount now, everything will be disclosed. Let us finalise first. Once it’s done, it will go to the Cabinet and the Chief Adviser for approval.”

Responding to speculation that the allowance could range between 10 to 15 percent, Dr. Ahmed said the figures were under consideration, but not final.

Asked about the financial strain faced by government employees amid inflation, he added, “There’s no reason for them to suffer. We are taking this seriously and will consider it carefully.”

When pressed if there was any good news for government staff, he cautiously replied, “There’s nothing to announce just yet, but we will consider their concerns.”