Government officials recruited after July 1 next year will be incorporated in the universal pension scheme, instead of the conventional post-retirement pension benefits.

Finance Minister Abul Hassan Mahmood Ali announced this during his budget speech in the parliament yesterday.

"We will bring new recruits of all government institutions, who get pension benefits, under the universal pension scheme," the finance minister said.

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Universal Pension Scheme: All you need to know

The move comes amid protests by employees of autonomous, state-owned, and other statutory organisations against the decision to include them in the Universal Pension Scheme.

"The fresh recruits of autonomous and state-owned institutions have already been brought under this system. Soon, we will introduce this system from July 1, 2025, for new recruits of other government institutions," said the finance minister.

He claimed it would be one of the most attractive pension schemes in the world as the government bears the fund management costs and the investment profits are among the depositors.

"If we can bring all citizens above 18 years of age under the Universal Pension Scheme, all will be covered by a well-organised social security structure, which would ensure their security in the future," said Mahmood Ali.

The Universal Pension has 4 schemes. The government has already launched "Prabash" for Bangladeshis working abroad, "Pragati" for private sector employees, "Suraksha" for self-employed citizens and "Samata" for citizens living below the poverty line.

Besides, employees of autonomous, state-owned, and other statutory organisations, along with their subordinates recruited after July 1 this year will be included in the Prottoy scheme, the minister added.

As per the prevailing system, government employees deposit money in the general provident fund (GPF) and those of autonomous and state-run corporations in a contributory provident fund (CPF), with interest rates ranging from 11 to 13 percent.