The government has decided to give a 5% yearly special incentive to public servants and pensioners on their gross salaries and allowances.
The incentive will also be provided to employees of civil, self-governed and state-owned organizations, banks, insurance and financial institutions, the Border Guard Bangladesh, and the police under the National Pay Scale, in accordance with Section 15 of the Public Service Act, per a Finance Ministry notification issued on Tuesday.
According to the notification, the special allocation came into effect on July 1.
The beneficiaries will receive the incentive – no less than Tk1,000 for government employees and a minimum of Tk500 for pensioners – every year on the first day of July.
Government employees will get special pay at the rate of 5% on their basic salary – a minimum of Tk1,000 – while pensioners, including the reinstated ones, will enjoy the same rate on net payable pension.
Besides, government employees on post-retirement leave (PRL) are entitled to special benefits at a similar rate based on their basic pay last drawn prior to their ongoing PRL.
Per the notification, the ministry notification said suspended employees will be entitled to the special benefit at a rate of 5% on 50% of their basic pay immediately preceding the date of suspension.
Employees will not get the benefit while on leave without pay. Moreover, the benefit will not be applicable to retired employees who have withdrawn 100% of their gross pension.
In case of contractual appointment under the national pay scale, the incentive will be given based on their basic pay. Provided, if such contractual employee is a pensioner, he/she shall be entitled to this benefit in either case – on the basis of net pension or basic pay of the contractual employee.
Apart from the organizations managed by funds from the government's revenue budget, other organizations will have to bear the necessary expenses for providing the benefit from their respective funds.
