Government employees to receive a 10% increase in basic salary starting from July

 Government employees to receive a 10% increase in basic salary starting from July.

Government employees will receive a 10% increase in their basic salary starting from 1st July. They already receive a usual 5% annual increment. Now an additional 5% will be added, resulting in a 10% increase in their salary.

During the announcement of the proposed budget for the fiscal year 2023-24 in the National Parliament yesterday, Prime Minister Sheikh Hasina mentioned providing a 5% additional incentive for government employees. She stated, "For the government employees who are currently serving, I request the Finance Minister to consider giving them a 5% advance as a special bonus. I hope the Finance Minister will take this matter into consideration. We will provide them the 5% additional incentive as a special encouragement."

Following the Prime Minister's statement, the Department of Finance within the Ministry of Finance has been contacted today, Monday, to inquire about their initial preparations regarding this matter. A summary will be presented to the Finance Minister, and then it will be forwarded to the Prime Minister's Office for approval. All the procedures are expected to be completed within July.

It has been reported that an additional expenditure of around three to four billion taka will be allocated from the national exchequer for the 5% increase. The additional incentive will not be one-time; it will be added to their monthly salaries. The Finance Department will work towards finalizing the process by the end of July when the government employees receive their salaries for the month. If the process is not completed within July, it will be done in August. However, the increased salary will be effective from July itself.

Prior to the budget announcement, during a press conference in the middle of May, the Prime Minister had hinted at a salary increase for government employees in line with inflation. The annual increment of 5% and the new 5% incentive are combined to ensure compatibility with the rising cost of living.

Regarding this matter, Selim Raihan, the Executive Director of the South Asian Network on Economic Modeling (SANEM), stated to The Daily Prothom Alo, "When everyone is crushed under inflation, it is a little relief for government employees. But what about the rest of the population? Everyone is affected by the market."