BAM has lost several high profile players in recent months, including women's national singles champion Yang Li Lian, and the increased allowance is seen as a way to stop this trend.
BAM president Tengku Tan Sri Mahaleel Tengku Ariff said: "A player's lifespan is only about 14 years and we have a responsibility to take care of those who have committed themselves to the country. As such, we will increase the players' allowances from those at the Bukit Jalil Sports School (BJSS) to the senior elite players.
"It is a 50-100% increment, backdated to Jan 1 this year. It doesn't include the prize money they take home from competitions.
"Our finance committee approved the new allowances and I presented it to the exco in today's meeting. I'm very happy to say that it was a unanimous decision in approving this new scheme.
"Of course, we will also try to be fair and considerate to those who are injured or those who are going through a change in partnerships. We will allow them a period of time to get back to their best. During that period, there will be no cut in their allowances."
He added: "We want to be fair to the players and not ditch them when they can't perform. One such way is to reassign them as sparring partners for the states or clubs or help them get a career in sports science, focusing on badminton. We will also decide on that later on and it will be technical director Morten Frost's decision when he takes over (in March)."