Bangladesh Government Issues New Pay and Allowance Order for Public Servants

The government of Bangladesh has officially issued a new notification concerning the pay and allowances for public servants. This significant development for government employees was formally announced and enacted through a newly released official notification.

The Finance Division issued this comprehensive circular on Saturday, officially titled the 'Services (Pay and Allowances) Order, 2026'. This document outlines the updated financial provisions and compensation structures established for government officials and employees across the country.

Along with the broader pay and allowance adjustments, the newly released notification specifically establishes tiered house rent rates determined by geographic areas and employment grades. These structured rates apply to various categories of public servants depending on their assigned locations and official pay scales.

According to the newly established regulations for the Dhaka North and South City Corporation areas, house rent is allocated at different percentages based on employee grades. For employees falling between Grade-20 and Grade-16, the house rent has been set at 60 percent of their basic salary.

Continuing the tiered structure for the capital's city corporation regions, public servants positioned from Grade-15 to Grade-10 are slated to receive 50 percent of their basic salary as house rent. Furthermore, those ranging from Grade-9 down to Grade-5 will be provided with a 45 percent house rent allowance.

Finally, for high-ranking government officials situated in the top tier from Grade-4 to Grade-1 within the Dhaka North and South City Corporation areas, the newly determined house rent rate is established at 40 percent of their basic salary.