NSI special allowance raised by 20%

The benefit will apply to employees at all levels of the NSI who are covered by the national pay scale.

The Finance Division’s Regulation-4 branch issued a gazette on September 17, which was published on Wednesday (September 23). It was signed by Dr Md will be calculated by adding 20 per cent to the amount an eligible NSI employee was Ferdous Alam, joint secretary of the Finance Division, on behalf of the President.

According to the notification, the new allowance will be calculated by adding 20 per cent to the amount an eligible NSI employee was receiving as a special allowance on June 30, 2026.

However, the increased rate will take effect from January 1, 2028. Until December 31, 2027, NSI employees will continue to receive the allowance under the existing rules, based on a Finance Division memorandum issued on September 1, 2014. 

The notification also specifies that the special allowance will not be calculated as a fixed percentage of basic pay under the National Pay Scale 2026. This means any increase in basic salary under the new pay scale will not automatically result in a corresponding percentage-based increase in the NSI special allowance.

Special provisions have also been set for employees on deputation. An employee receiving the NSI special allowance while on deputation will not be entitled to the risk allowance, special allowance, or, where applicable, defence service allowance prescribed for their respective force.

The government said the 20 percent increase was determined based on the special allowance rates in force on June 30, 2026. The revised allowance will come into effect on January 1, 2028.