Budget FY25: Govt plans to allocate Tk100cr for Somota, Prottoy schemes
The government will deposit an amount equal to the contributions paid by individuals enrolled in these two schemes into their pension accounts
The Finance Ministry plans to allocate Tk100 crore in the upcoming budget for the government's contribution to the Somota and Prottoy schemes of the Universal Pension Scheme, sources say.
The government will deposit an amount equal to the contributions paid by individuals enrolled in these two schemes into their pension accounts.
Of the five schemes within the Universal Pension Scheme, only Somota and Prottoy receive government contributions.
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The other three schemes – Probas, Progoti, and Surokkha which cater to the private sector – do not include government contributions.
The government has launched the Somota scheme for individuals living below the poverty line, with an annual income of less than Tk60,000. In this scheme, participants make a monthly contribution of Tk1,000, with the individual paying Tk500 and the government covering the remaining Tk500.
To support this, the government has allocated Tk5 crore in the current fiscal year's budget to fulfil its contribution requirement.
A recent notification issued by the Finance Division stipulates that employees of autonomous, state-owned, and other statutory organisations, along with their subordinates, who commence their employment on or after 1 July 2014, will be mandatorily enrolled in the Prottoy scheme.
Under the scheme, the employing organisation will deduct a maximum of 10% of the employee's basic salary or a maximum of Tk5,000, whichever is lower, and will deposit the same amount into the employee's account. Both contributions will be credited to the corpus account of government employees managed by the Universal Pension Authority.
Finance Division officials said the government plans to include government employees in the Prottoy scheme in the future.
On 17 August last year, Prime Minister Sheikh Hasina inaugurated the Universal Pension System, introducing four schemes: Probas, Progoti, Surokkha, and Somota. According to the Finance Division, as of 12 May this year, 158,100 people have been enrolled in these schemes.
