Pension
The government provides an old-age allowance where the recipient must be at least 65 years of age (62 years of age for women), and their annual average income must be under BDT 3,000 (Bangladeshi takas). Priority is given to those who are physically and mentally infirm or handicapped, have no assets, are homeless, landless, freedom fighters, widowed, divorced, single, and deserted by their family. Beneficiaries of old-age allowance receive BDT 600 a month payable every quarter, without limit of time.
Private employees can participate in a voluntary pension scheme called the Universal Pension Scheme. There are four plans available under the Universal Pension Scheme: Pragati, Surokkha, Samata, and Probas. Only Bengali citizens are eligible to enroll, and a worker must complete 10 years of contributions to be entitled to a pension. Workers can contribute for up to 42 years, assuming they start making contributions at 18 years of age. The amount is the total sum of contributions plus any interest accrued.
Dependents/Survivors Benefits
If an employee dies while in service after continuous work for at least 2 years, their nominee (or, in the absence of such, dependents), must be paid by the employer compensation at the rate of 30 days’ wages for a normal death and of 45 days for accidental death occurred while working in the establishment or on duty for every completed year of service or any part thereof over 6 months, or gratuity (whichever is higher). The amount is an addition to any other benefit to which the deceased employee would have been entitled if they had retired from the service.
Under the new voluntary Universal Pension Scheme, pensioners who are entitled to receive benefits through this scheme may nominate a beneficiary in the event of death before the age of 75. The nominated beneficiary will receive the monthly payments on behalf of the pensioner until the date the pensioner would have reached the age of 75. If the pensioner does not specify a beneficiary, the heir or successor of the pensioner will be the beneficiary.
Invalidity Benefits
In Bangladesh, employees who have suffered a bodily injury by accident arising out of or caused directly by their job are entitled to compensation, except when it is caused by their own negligence.
Compensation shall be calculated as follows:
- In case of a permanent disability, a lump sum amount of BDT 125,000 (Bangladeshi takas) is paid
- In case of permanent partial disability, a percentage of the average monthly wage is paid
- In case of temporary disability, 100% average monthly compensation is paid for the first 2 months, 66.7% is paid for the next 2 months and 50% for subsequent months up to 2 years
According to the Rights and Protection of Persons with Disabilities Act of 2013, persons with disabilities are eligible for a monthly allowance of BDT 850, provided they are permanent residents and have an annual income less than BDT 36,000.