Bangladesh is significantly increasing the pensions for millions of retired government officials and employees. A new pay structure has been announced. The official gazette notification was published on Saturday. These new pension rules are effective from July 1.
The increase means that retirees who receive lower pensions will see larger benefits. For example, those currently receiving Tk 9,000 or less per month will now get Tk 18,000. This is a 100 percent increase in their monthly payment.
Retired officials who receive the highest pensions will also see a rise. Those earning Tk 40,001 or more will now receive Tk 70,200. This is an increase of 55 percent. The new plan ensures that all pensioners benefit.
The new structure details five different phases of increase. Pensioners receiving between Tk 9,001 and Tk 20,000 will get a 75 percent increase. Those in the Tk 20,001 to Tk 30,000 bracket will see a 65 percent rise. Retirees with pensions from Tk 30,001 to Tk 40,000 will receive 60 percent more.
The Cabinet approved this new pension proposal on August 31. Cabinet Secretary Nasimul Ghani spoke after the meeting. He said the government is committed to the ‘one rank, one pension’ (OROP) system. This was a promise made in the election manifesto.
The ‘one rank, one pension’ system aims to give similar pensions to people who retired at the same rank. This will apply to both military and civilian personnel. However, implementing this system will need a lot of money.
Also, the government lacks information on civilian employees who retired before 2019. Because of these challenges, the ‘one rank, one pension’ system will be put into practice gradually. The full implementation is planned for 2030.
