Implementation of dearness allowance to take time : Finance Adviser

Liberty News Desk
Photo: Collected

Finance Adviser Dr. Salehuddin Ahmed has said that implementing the proposed dearness allowance for government employees will take time, though recommendations have already been made based on inflationary pressures.

Speaking to journalists on Tuesday after a meeting of the Government Purchase Advisory Council at the Secretariat, Dr. Salehuddin stated that the percentage of dearness allowance to be granted will be announced later. “The process is under review, and it will take some time to implement,” he added.

Sources said the government formed a seven-member review committee in December last year, headed by the Principal Secretary to the Chief Adviser, to assess the financial feasibility of the allowance. After reviewing the matter, the committee recommended a graded allowance of 10 to 20 percent based on employee ranks.

Initially, the allowance was planned to be implemented from January 2025. However, delays in assessment and financial planning have slowed the process.

Officials at the Ministry of Finance noted that the government typically revises the salary structure of public servants every five years. The last revision was implemented in 2015, and no new pay scale has been introduced since then. In the meantime, inflation has significantly increased, prompting the move for a separate dearness allowance to ease the financial burden on public employees.

The proposal is currently under consideration, and further announcements are expected once budgetary evaluations are finalized.

LND/BG

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