Lifetime family pension for widows who don’t remarry

The government has revised pension and retirement benefit rules for public servants, introducing new pension rates linked to length of service and revised arrangements for existing pensioners, according to a Finance Division gazette notification issued on Sunday. 
The provisions take effect from 1 July 2026.
Under the new rules, the widow of a deceased government employee, or the widower of a deceased female employee, will be entitled to a lifetime family pension provided they do not remarry. 
They must submit an annual undertaking to the relevant accounts office confirming this. The requirement will not apply to widows above 50 years of age.
Pension rate tied to service length
The pension rate will be calculated on the employee’s last drawn basic salary, rising progressively with years of service: 21% after five years, 36% after 10 years, 54% after 15 years and 72% after 20 years. 
It then climbs to 75% at 21 years, 79% at 22 years, 83% at 23 years and 87% at 24 years, reaching a maximum of 90% for 25 years or more of pensionable service.
Existing pensioners to get revised net pension
Current pensioners will see their net pension revised based on what they received on 30 June. 
Those getting up to Tk9,000 will see a 100% increase, taking their pension to between Tk10,000 and Tk18,000. 
Pensioners in the Tk9,001-20,000 bracket will get a 75% rise, reaching Tk18,001-35,000, while those in the Tk20,001–30,000 range will get 65%, taking pensions to Tk35,001–49,000.

Pensioners receiving Tk30,001-80,000 will see a 60% increase, up to Tk62,000, while those above Tk80,000 will get a 55% rise. 
The revised net pension is capped at Tk70,200; those already earning above this threshold will continue receiving their current pension until a specified period, after which annual increments will apply under the new rules.
Gratuity, leave encashment rules
Gratuity rates remain unchanged: Tk265 per taka of pension for five to under 10 years of service, Tk260 for 10 to under 15 years, Tk245 for 15 to under 20 years, and Tk230 for 20 years or more.
Retiring employees may encash up to 18 months of accumulated leave, equivalent to 18 months’ basic salary. 
For post-retirement leave and encashment, two days of earned leave may be converted into one day calculated at average pay, subject to applicable rules. 
Employees remain eligible for leave encashment even without taking post-retirement leave.
The rules also introduce one-time special financial assistance for employees who become permanently incapacitated on health grounds, or who die before completing five years of service, subject to prescribed conditions.