Universal pension to take effect from next year

The universal pension scheme will take off in July next fiscal year. All citizens aged between 18 and 50 will be entitled to the benefits of the move, Finance Minister AHM Mustafa Kamal said. 

"In the 2008 election manifesto, Hon'ble Prime Minister Sheikh Hasina promised to introduce a universal pension scheme nationally to ensure old-age protection for the elderly citizens under a sustainable and well-organised social security framework. Accordingly, the government, in its 2015 'National Social Security Strategy', proposed the creation of a comprehensive, integrated and participatory pension scheme. In my budget speech for FY2019-2020, I outlined the establishment of the universal pension scheme. Now, I am very glad to announce that the government has decided to introduce a universal pension system from the next fiscal year," the finance minister said during the budget speech on Thursday (7 June). 

Finance Minister AHM Mustafa Kamal said that it is high time to establish a universal pension system in Bangladesh as at present the number of working people is much higher than the elderly population.

"Under various programmes for social protection of the elderly and needy communities, our government is providing allowances to about 1.15 crore beneficiaries. Bearing in mind, the government's election pledge, a policy decision has been taken to enact the 'Universal Pension Management Act, 2022' to introduce a universal pension system to ensure a sustainable social safety net for the elderly and the needy people," he said, 

The law has already been drafted. After passing through all necessary formalities, it will be possible to present this important law to the National Parliament by 2022, the minister added. 

"The implementation of the universal pension scheme will bring a large number of citizens from both the formal and informal sectors under the institutional social safety net. Consequently, there will be an opportunity to gradually scale down the existing social security programmes," Mustafa Kamal further said.