The government has further raised the house rent allowance for teachers and staff of non-government educational institutions enlisted under the Monthly Pay Order (MPO) with effect from November 1 amid protests.

The hike will be implemented in two phases.

According to an official order, the allowance will be set at 7.5 percent of the basic salary (with a minimum of Tk 2,000) from 1 November 2025 while another 7.5 percent increase, bringing the total to 15 percent of the basic salary (minimum Tk 2,000)—will take effect from 1 July 2026.

The Finance Division gave its consent to the rise despite the government’s existing budgetary limitations.

Earlier, the government had approved a 5 percent (minimum Tk 2,000) increase in house rent allowance for MPO teachers and staff.

The decision was, however, rejected by the teachers and staff who continued their protest demanding a higher increase.

Education Adviser hopes protesting MPO teachers will return to classes

The MPO teachers and staff started staging demonstrations from October 12 to press for three demands, including the house rent hike.

According to the office order, the enhanced benefits must comply with relevant MPO policies, including the Non-Government Educational Institution (School and College) Manpower Structure and MPO Policy 2021, Madrasah MPO Policy 2018 (amended up to 23 November 2020), and Vocational, Business Management, Agriculture and Fisheries Diploma MPO Policy 2018 (amended up to 23 November 2020).

It noted that the increase would not create any arrear claims for MPO-listed teachers and staff. All financial regulations must be strictly followed and any irregularities in expenditure will render the bill-approving authority liable.

The order also directed the administrative ministry concerned to issue a government order (G.O.) and send four copies to the Finance Division for endorsement.

Meanwhile, the Finance Division’s earlier circular has been cancelled with this new order.