Contractual bankers will not get provident fund, gratuity benefits: BB

The employees who are appointed on contractual basis by commercial banks will not get provident fund, gratuity benefits after the end of their service period, said the Bangladesh Bank.

The central bank's Banking Regulations and Policy Department on Monday issued a circular in this regard on Monday (15 May), directing all commercial banks' managing directors and chief executive officers (CEO) to follow the instruction.

Employees of commercial banks often get re-appointment on contractual basis upon completion of their regular terms.

The central bank said it received complaints that some of the employees getting contractual appointments continue to accrue interest on their previous provident funds deposited during their regular service.

In addition, the contractual service period is also taken into account when it comes to offering gratuity.

From now on, no officer or employee appointed on contractual basis will be entitled to provident fund or any gratuity benefits.

Earlier in 2018, in a circular of the central bank, the age limit of the contractually appointed officers/employees was fixed at 65 (sixty five) years in order to eliminate the disparity in the age limit between the chief executive and other subordinate contractual officers/employees of the central bank.