September 20, 2026

Govt employees’ house rent rises. Who gets what?

Rates will vary by grade and location, with Dhaka getting the highest share

bdnews24.com News Service

Published : 19 Sep 2026, 07:38 PM

Updated : 19 Sep 2026, 07:38 PM

The government has set new house rent allowances for public servants under the new pay structure, with rates varying by grade and posting area.

The benefits linked to basic pay will be fully implemented from Jan 1, 2028.

In a gazette issued by the Finance Division on Thursday and published on its website on Saturday, the government set different house rent rates based on employees’ grades and workplaces.

At present, government employees working in Dhaka city corporation areas receive house rent allowance based on their basic pay.

Those with a basic salary of up to Tk 9,700 receive 65 percent, subject to a minimum of Tk 5,600.

Employees earning Tk 9,701 to Tk 16,000 get 60 percent, with a minimum of Tk 6,400, while those earning Tk 16,001 to Tk 35,500 receive 55 percent, subject to at least Tk 9,600.

For those with a basic salary of Tk 35,501 or more, the allowance is 50 percent, with a minimum of Tk 19,500.

Under the new structure, employees in Dhaka North and South city corporation areas will receive house rent allowance according to their grades.

Those from the lowest step of Grade 20 through the highest step of Grade 16 will get 60 percent of basic pay.

The rate will be 50 percent for employees from the lowest step of Grade 15 through the highest step of Grade 10.

Grades 9 through 5 will receive 45 percent, while employees from Grade 4 through Grade 1 and above will get 40 percent.

Rates Outside Dhaka

In designated areas under the Khulna, Rajshahi, Chattogram, Sylhet, Barishal, Narayanganj, Cumilla, Rangpur, Gazipur, Mymensingh and Bogura city corporations, as well as Savar and Cox’s Bazar municipalities, the rates will be lower.

Employees from Grade 20 through Grade 16 will receive 50 percent, those from Grade 15 through Grade 10 will get 40 percent, and Grades 9 through 5 will receive 35 percent.

For Grade 4 through Grade 1 and above, the allowance will be 30 percent.

In other areas, the rates will be 45 percent for Grades 20-16, 35 percent for Grades 15-10, 30 percent for Grades 9-5, and 25 percent for Grade 4 through Grade 1 and above.

New Payscale Rollout

The government will introduce the new pay structure in phases.

From Jul 1 to Dec 31, employees in Grade 9 and above will receive 40 percent of their additional basic pay, while those in Grades 10 to 20 will get 50 percent.

From Jan 1 to Jun 30, 2027, the rates will rise to 70 percent for Grade 9 and above and 75 percent for Grades 10 to 20.

The full increase in basic pay will take effect from Jul 1, 2027.

Allowances linked to basic pay, including house rent, will be fully implemented from Jan 1, 2028.

Other Allowances

The medical allowance will be Tk 3,000 for employees aged up to 50 and Tk 4,000 for those aged 50 years and one day until their post-retirement leave.

Retirees and lifelong family pensioners aged up to 50 will receive Tk 3,000, while those aged 50 years and one day to 60 will get Tk 4,000.

The allowance will be Tk 7,000 for those aged 60 years and one day to 70 and those aged above 70.

The Bengali New Year allowance will be 15 percent of basic pay.

Employees will receive festival allowances twice a year, with each payment equal to one month’s basic salary.

Those in Grades 11 to 20 will receive Tk 500 a month as a tiffin allowance, unless their institution provides lunch.

The education allowance will be Tk 500 a month for the first child, with a maximum of Tk 1,000 for two children.

Employees in Grades 11 to 20 working in city corporation areas will receive Tk 600 a month as a travel allowance.

Employees in Grade 5 and above will get Tk 500 a month as a mobile allowance, while those in Grades 6 to 20 will receive Tk 150.

A monthly allowance of Tk 3,000 will be available for employees with children with special needs, covering a maximum of two children.

Related Stories