Planning for retirement? If you’re a government employee in Bangladesh, understanding how your pension is calculated can help you estimate your monthly income and gratuity after retirement. This guide explains how to calculate your pension using clear examples, official formulas, and a tool you can try yourself.
Use our Bangladesh Pension Calculator to get a quick and accurate estimate.
What Is a Pension in Bangladesh?
A pension is a fixed monthly payment given to government employees after retirement, based on their last basic salary and years of service. It provides long-term financial security.
There are two key parts:
- Monthly pension: Recurring income every month
- Gratuity: One-time lump sum payment based on service length and basic salary
This guide covers how both are calculated. You can easily calculate your loan EMI using Loan Calculator BD before applying for any bank loan.
Pension Eligibility for Government Employees
To qualify for a pension in Bangladesh:
- Minimum of 10 years of qualifying service
- Must retire at the official retirement age (usually 59 for most cadres)
- Pension is based on last basic salary and total service years
Pension Formula in Bangladesh
The government pension formula is:
Monthly Pension = (Last Basic Salary × Pension Percentage) ÷ 2
Where:
- Pension percentage is based on service years
- For example, 25+ years of service = 90%
Pension Percentage Table
| Service Years | Pension Percentage |
|---|---|
| 10 years | 40% |
| 15 years | 60% |
| 20 years | 75% |
| 25+ years | 90% |
Note: Pension is capped at 90% of last basic salary. You can easily plan your monthly payments using our Bank Loan Calculator to understand your installment schedule.
Gratuity Calculation Formula
Gratuity = Last Basic Salary × Service Years × 1.5
Buying a new home becomes easier when you use the Home Loan Calculator to calculate your monthly mortgage.
So, if your basic salary is BDT 40,000 and you worked 25 years:
- Gratuity = 40,000 × 25 × 1.5 = BDT 15,00,000
Example: Monthly Pension + Gratuity
Input:
- Basic Salary: BDT 50,000
- Service Years: 25
Monthly Pension:
- Pension % = 90%
- Formula: (50,000 × 90%) ÷ 2 = BDT 22,500
Gratuity:
- 50,000 × 25 × 1.5 = BDT 18,75,000
Try the Bangladesh Pension Calculator Tool
Enter your:
- Date of birth
- Date of retirement
- Total qualifying service years
- Last basic salary
The online tool instantly shows:
- Estimated Monthly Pension
- Total Gratuity
- Service breakdown
Before applying for a loan, check your estimated EMI through the EMI Calculator BD for accurate results.
Frequently Asked Questions
Q: What is the minimum service required to get a pension?
A: 10 years of qualifying service.
Q: What is the maximum pension I can get?
A: 90% of your last basic salary, divided by 2.
Q: Is there any pension for private sector workers?
A: Not in the same format. However, private sector professionals may plan via provident fund or the new universal pension scheme.
Q: Does gratuity apply to everyone?
A: Only employees completing the required service period under pension rules.
Q: How is family pension calculated?
A: A percentage of the deceased pensioner’s pension, subject to eligibility.
SADIP is the creator of LoanCalculatorBD.com, a trusted resource for accurate and easy-to-use financial calculators tailored for users in Bangladesh. With a deep understanding of personal finance and local banking needs, SADIP is dedicated to helping individuals make smarter loan decisions. His mission is to simplify complex calculations and empower users with clear, reliable tools for managing their finances with confidence.
