Public servants joining after July 2025 will be under Universal Pension Scheme

They will have to save money for the pension from their salary

Amid protests by public university teachers against their inclusion in Universal Pension Scheme, the government has said new public servants will also be brought under the scheme.

Those joining public service after July 2025 will not get pension under the current system, the government said in the national budget for 2024-25 fiscal year on Thursday.

According to the new proposal announced by Finance Minister Abul Hassan Mahmood Ali, government employees will have to save money for the pension from their salary.

“The Universal Pension system will be one of the most lucrative pension schemes in the world. If all the citizens above 18 years of age can be included in the system, their social safety will be bolstered,” he said.

“The operating expenditures of the Universal Pension system are being borne by the Government, and the profit is expected to be distributed among the pension policyholders,” he added.

As many as four different pension schemes were launched through Universal Pension Management last year. The new scheme allows public officials to deposit Tk 1,000 to Tk 10,000 per month.

Government officials aged 60 will be able to avail the life-long pension benefits through the Universal Pension system. Upon their death, the nominee will get pension until the age of 75.

“Probash,” a scheme which has been designed for Bangladeshi expatriates, allows a minimum deposit of Tk 5,000 to Tk 10,000 per month.

Earlier, private sector employees could deposit up to Tk 5,000 per month under the “Pragati” scheme. The amount was later increased to monthly deposits of Tk 10,000.

Self-employed individuals can also avail of the Universal Pension scheme under “Suraksha” by depositing a maximum of Tk 5,000 every month.

Citizens living below the poverty line can deposit Tk 1000 under the “Samata” scheme. Of this, Tk 500 will be provided by the government. However, availing of this scheme will prevent them from benefiting from the social security allowance.

The government has also introduced a new scheme, “Prottoy,” under which employees of self-governing, autonomous, state-owned, statutory, or homogenous organisations and their subordinate bodies will be able to deposit a maximum of Tk 10,000 per month.

Teachers of public universities have expressed their grievances over the decision to include the newly appointed educators in the Universal Pension.

As part of their protests, they will begin a total work stoppage from Jul 1 if the government does not rescind the Prottoy Scheme.