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Proposal to Increase Teachers’ House Rent Allowance Sent to Finance Ministry

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October 15, 2025 10:20 pm
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The Ministry of Education has submitted a proposal to the Ministry of Finance recommending an increase in house rent allowance for teachers and staff of private MPO-registered (Monthly Payment Order) educational institutions. The proposal suggests setting the allowance between 5% and 20% of the basic salary, depending on the government’s financial capacity.

This information was confirmed on Wednesday (October 15) by sources within the Ministry of Education.

Meanwhile, teachers under MPO enlistment have taken to the streets, staging a blockade at the Shahbagh intersection in Dhaka. The area turned tense as teachers demanded a 20% house rent allowance, a monthly medical allowance of Tk 1,500, and a 75% festival bonus for non-teaching staff. They declared that no teacher would return to the classroom until these demands are met.

The teachers, who had been holding a sit-in protest at the Central Shaheed Minar, marched to Shahbagh and blocked the road at around 2 PM, disrupting traffic in the area.

Earlier, on September 30, the government announced an increase of Tk 500 in house rent allowance for MPO-listed teachers and staff. However, this decision—published officially on October 5—was rejected by the teachers, prompting a fresh round of protests. On October 6, the Ministry of Education forwarded a revised proposal to the Finance Division, suggesting the allowance be increased to at least Tk 2,000 to Tk 3,000.

Currently, MPO-registered teachers receive salaries based on the national pay scale, along with a Tk 500 monthly medical allowance and Tk 1,500 for house rent (following the recent increase from Tk 1,000). They also receive two annual festival bonuses amounting to 50% of their basic salary—an increase from the previous 25%. However, teachers are now demanding that the festival bonus be raised to 75%.

Until these demands are fulfilled, teachers have announced they will continue their work abstention, resulting in widespread disruption of classes in schools and colleges across the country.