Private sector workers to get 30% lump-sum under new pension plan

The government has proposed introducing new benefits under the Universal Pension Scheme, allowing private sector employees to receive 30% of their accumulated savings as a lump-sum gratuity upon retirement.

The government has proposed enhanced benefits for private sector employees under the Universal Pension Scheme in the FY2026-27 budget, Finance Minister Amir Khosru Mahmud Chowdhury said on Thursday.

Under the proposal, participants will receive 30% of their total accumulated savings as a one-time gratuity at the time of retirement, in addition to regular pension benefits.

The finance minister said the initiative aims to strengthen post-retirement financial security for private sector workers and make the social protection system more inclusive and effective.

He added that the government is expanding social safety net programmes, including increased allowances for women, the elderly and persons with disabilities, alongside strengthening the national pension framework.

The proposed measures are expected to improve long-term financial stability for workers in the private sector and widen the coverage of social protection in the country.

TZ