Bangladesh, March 2 -- The government is considering raising pay and allowances of public servants by 25 per cent as part of "price adjustment," officials said.

This includes an annual increment of 5.0 per cent.

The fresh proposal comes after the government offered a string of fringe benefits to the in-service employees and retirees, including home and car loans.

The proposal is at the initial stage and officials concerned are working on it.

Finance Ministry officials said if it progresses accordingly the pay-rise for 1.3 million public servants will be implemented from the 1st of July this year.

The current national pay-scale was announced in December 2015. It was also announced then that the salaries of public servants would be incre...