Bangladesh Bank has issued a new instruction regarding provident fund-gratuity benefits to bank officials. According to this directive, there is no need to create any provident fund for the contractual officers or employees of the bank after retirement and they will not be entitled to such benefits. At the same time, any officer-employee appointed on contractual basis will not be entitled to any new gratuity benefits.
On Monday (May 15), the Banking Regulations and Policy Department of Bangladesh Bank issued a directive in this regard. According to the instructions of Bangladesh Bank, complaints are being received that after the completion of the regular service period of some of the officers/employees working in some banks, interest calculation has been continued on the previous provident fund deposited during their regular service in the case of contractual employment of some of them. Moreover, gratuity is being paid on the basis of the last pay received after adding the contractual period to the regular period of service and calculating the total period of service. Which is in no way due as per rules.
The directive further states that, in order to ensure greater discipline and good governance in the banking sector, after the regular officers/employees working in the bank have completed their regular service, the regular service of the officers/employees appointed to the bank from now on to determine the availability of provident fund and gratuity in case of re-contractual employment for the essential needs of the bank. At the time of final retirement, the amount due towards provident fund and gratuity should be paid in full as per existing policy. No provident fund is required to be created for contractual officers/employees and they are not entitled to such benefits. No officer/employee appointed on contractual basis shall be entitled to any gratuity benefit afresh.
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