Finance Division approves 15% house rent hike for MPO teachers, staff

The Finance Division has approved a house rent increase for private school and college teachers and staff under the MPO scheme, following their protests.

The allowance will rise by 7.5% from November 1 and an additional 7.5% from July 2026, totaling a 15% increase.

The Finance Division sent the approval letter to the Secretary of the Secondary and Higher Education Division at the Ministry of Education on Tuesday.

According to the order, considering the government’s current budget constraints, the house rent allowance for MPO-registered staff at private educational institutions will be increased as follows: 7.5% of basic salary (minimum Tk2,000) from November 1, and a further 7.5% (minimum Tk2,000) from July 2026, totaling 15%. The approval letter includes several conditions:

Conditions:
(a) The additional allowance must be coordinated with future pay scales.
(b) Recruitment and employment must follow the MPO policies for private schools, colleges, madrasas, and vocational/institutional staff as issued by the government, including amendments up to November 23, 2020.
(c) MPO-registered teachers and staff will not be entitled to any arrears of this allowance.
(d) All financial rules must be strictly followed in disbursing the allowance.
(e) Any future irregularities in the allowance payments will hold the paying authority accountable.

Teachers had staged demonstrations demanding a 20% house rent allowance, Tk1,500 medical allowance, and 75% festival allowance, gathering at the National Press Club on October 12 and at the Central Shaheed Minar from October 13.