Pension for private jobholders in Bangladesh by 2019, says Muhith

The government hopes it can introduce pension schemes for private sector jobs before it runs its term in 2019, says Finance Minister AMA Muhith.

The Awami League formed government for the straight second time in 2014.

On Thursday, Muhith proposed the eighth budget of the Awami League over two terms – his tenth – where he laid out a financial plan of Tk 3.41 trillion for the upcoming FY 16-17.

In the regular post-budget media briefing on Friday, he said, "A pension system for the private sector…I don't want to spell out any details right now. It should be incorporated in the social safety strategies."

Muhith said a 'contributing pension scheme' can be introduced at least for the industries that were 'organised.'

"Both the employees and employers can contribute to create a pension fund."

Muhith was joined on stage by ministers Tofail Ahmed, AHM Mustafa Kamal, Matia Chowdhury and Hasanul Huq Inu at the media briefing.

The octogenarian minister took a look at his colleagues and said, "We are all approaching our 70s. We need to consider this. We are working it out. It will take a bit time…

"But we will be able to introduce the scheme within this term."

In his budget speech, Muhith said an inclusive and robust pension scheme was now the 'demand of the day' as the demography was changing due to a drop in population growth and hike in life expectancy rate.

"On the other hand, due to urbanisation, the number of nuclear families is also rising, which increases future risks of financial and social insecurity for ageing population," he had told Parliament.

The government is considering 'fundamental changes' to the existing pension system, Muhith said on Thursday; it wanted to introduce a contributory scheme for public servants who will join in future.

"We plan to introduce, in phases, under an integrated government-run framework, a comprehensive pension system for all including the self-employed as well as those formally or informally employed in semi-government organisations and the private sector," he said in his budget speech.