How Much Govt Employees Salaries Increase in 2025?

In a major financial relief, the government has announced a dearness allowance for its employees with salary increases ranging from Tk4,000 to Tk7,800 which was effective from February. This is the first time the allowance is being structured based on an employee’s grade, ensuring higher support for lower grade employees. 

As per the Ministry of Finance’s proposal, employees in grades one to three will receive 10% of their basic salary while those in grades four to ten will get 20%. The highest increase of 25% will be given to employees in grades eleven to twenty. The allowance will also apply to pensioners. However, with this implementation the previous 5% dearness incentive will be discontinued. 

The budget for government salaries and allowances in the 2024-25 fiscal year is Tk 81,580 crore. While there is no specific allocation for this dearness allowance, adjustments will be made within the development budget.

The last government pay scale revision was in 2015 and since then salaries have remained unchanged despite rising living costs. The Senior Secretary of the Ministry of Public Administration, Mokhlesur Rahman confirmed that the allowance will be finalized by June 30.

This action supports 2.1 million military and civilian workers but fails to account for private sector workers which raises concerns of economic inequities. The salary increases look to provide some relief because of inflation increases even the general public may face impact on rising costs.