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New Financial Benefits for Government Employees Effective from July 1, 2025

New Financial Benefits for Government Employees

From July 1, 2025, government employees and pensioners in Bangladesh will receive new financial benefits, including a minimum of BDT 1,000 for employees and BDT 500 for pensioners. Learn more about the official announcement.

The Ministry of Finance has issued a new circular announcing special financial benefits for employees and pensioners under various government and semi-government institutions. This includes civil government departments, autonomous and state-owned organizations, banks, insurance and financial institutions, Border Guard Bangladesh (BGB), and the Bangladesh Police.

Effective Date: July 1, 2025

According to the circular issued by the Regulation-3 Branch of the Finance Division and signed by Additional Secretary Dilruba Shahina under the President’s order, the government has introduced an annual “special benefit” under Section 15 of the Government Service Act, 2018.

Key Points of the Benefits for Government Employees :

  • Employees in Grades 1–9: Will receive 10 percent of their basic salary, with a minimum benefit of BDT 1,000.

  • Employees in Grades 10–20: Will receive 15 percent of their basic salary, with a minimum benefit of BDT 1,000.

  • Pensioners: Will receive 10–15 percent of their existing pension amount, with a minimum benefit of BDT 500.

This benefit will be provided every year on July 1, calculated based on the recipient’s current grade and basic salary or pension amount.

Eligibility Details:

  1. In-service employees under the 2015 national pay scale from grades 1 to 20 will qualify, based on their respective grade.

  2. Employees on Post-Retirement Leave (PRL) will receive this benefit based on the last basic salary received before entering PRL.

  3. Pensioners, including those whose pensions have been restored after rejoining service, will receive the benefit on their existing pension.

  4. Employees under contract, if previously under the national pay scale, will receive the benefit based on their last basic salary before the contract began. If the individual is also a pensioner, they may choose either the pension-based or salary-based benefit—not both.

  5. Suspended employees will receive 50 percent of their last drawn basic salary as the basis for calculating the benefit.

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Who Will Not Be Eligible:
  • Employees who have surrendered 100 percent of their gross pension for a one-time gratuity and are not yet eligible for pension restoration.

  • Employees on Leave Without Pay (LWP) during the benefit period.

Budget and Financial Responsibility:

For autonomous bodies, state-owned enterprises, and financial institutions that are not fully funded by the government’s revenue budget, the cost of this benefit must be covered by the respective organization’s own budget.

The newly issued circular revokes the previous finance division order (Order No. 07.00.0000.161.99.010.23-132, dated July 18, 2023).

Implementation:

This new benefit system has been declared in public interest and will come into force on July 1, 2025.

Source: Jugantor

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