Government approves five-tier pension increase for retired civil servants
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The Cabinet has approved a new pension structure for retired government employees, establishing a five-tier system designed to significantly increase benefits for those who retired earlier or receive lower monthly payments. The decision was formalized during a Cabinet meeting chaired by Prime Minister Tareq Rahman at the Secretariat on Monday.
Cabinet Secretary Nasimul Goni announced the details of the adjustment during a subsequent press briefing held at the Department of Films and Publications. According to the new policy, the increases are scaled based on current net pension amounts: those receiving 9,000 taka or less will see a 100 percent increase, while those receiving between 9,001 and 20,000 taka will receive a 75 percent hike. Recipients of 20,001 to 30,000 taka are set for a 65 percent increase, those earning 30,001 to 40,000 taka will see a 60 percent rise, and those receiving 40,001 taka or more will see a 55 percent increase in their net pension.
The government noted that the tiered adjustment aims to provide immediate financial security to elderly retirees, effectively serving as an interim measure until the full implementation of the “One Rank One Pension” system. Officials emphasized that while the government remains committed to its election pledge of implementing the “One Rank One Pension” policy across both military and civil sectors, significant logistical and fiscal challenges remain.
Specifically, the government cited the substantial budgetary requirements and a lack of comprehensive data regarding civil servants who retired prior to 2019 as primary obstacles. Consequently, the administration has decided to implement the “One Rank One Pension” system in phases, targeting full completion by 2030. In the interim, officials stated that the tiered salary structure was developed to directly improve the quality of life and financial stability of long-term pensioners.
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