The government has approved a minimum monthly house rent allowance of Tk 2,000 for teachers and staff at private educational institutions under the Monthly Pay Order (MPO) scheme, setting the benefit at 5% of basic pay with the floor applied where applicable.
In a letter sent by the Ministry of Finance to the secretaries of the Secondary and Higher Education Division and the Technical and Madrasah Education Division, officials said the decision would take effect from November 1, 2025.
The letter, signed by Finance Division Deputy Secretary Mitu Mariam, noted that the approval was granted in view of current budget constraints and applies to all MPO-listed personnel at non-government schools, colleges, madrasas and vocational institutes.
The finance ministry set several conditions. The allowance must be adjusted in line with any future national pay scale; appointments and eligibility must comply with existing MPO manpower structures and policies for schools and colleges (2021), madrasas (2018, as amended to November 23, 2020) and vocational streams (2018, as amended to November 23, 2020), along with any subsequent government circulars. The order does not create any arrears claim; all standard financial rules must be observed in disbursement; any future irregularities will be the liability of the paying authority; and the administrative ministry must issue a government order (G.O.) and forward four copies to the Finance Division for countersignature, according to a government notification issued on Sunday (October 19).
The move follows sustained demonstrations by MPO-affiliated teachers and employees at the Central Shaheed Minar in Dhaka. Protesters have been demanding a 20% house rent allowance, a Tk 1,500 monthly medical allowance, and a 75% festival allowance for employees.
As part of their rolling programme, they planned a “hunger march” toward the Education Ministry at noon on Sunday (October 19), carrying plates and bowls to highlight their grievances.
The new measure partially addresses the house rent demand but falls short of the protesters’ call for a 20% rate. Education-sector representatives said they would review the government’s decision and consult their members on next steps.
SMS/
