For years, millions of Bangladeshi workers in the private sector and informal economy have been excluded from any formal retirement safety net, a gap the government has been seeking to bridge through its Universal Pension Scheme (UPS). In 2026, as the government ramps up its social protection drive and the programme picks up steam, two of its four pillars – Progoti and Surokkha – are attracting the greatest interest among working-age Bangladeshis. Everything you need to know about both.
The Big Picture: Why This Matters
Now, as part of the social protection strategy for the FY2026-27 national budget, Bangladesh has announced an expansion of its flagship Universal Pension Scheme, with the government allocating Tk 1,44,338 crore for its comprehensive social safety net programmes. By April 30, 2026, a total of 3,77,545 citizens had registered under the four pension schemes, and the total deposits in the pension fund stood at Tk 255.70 crore. Now the government has set an ambitious target of covering at least one member of each of the country’s nearly 4 crore families under the scheme by 2030.
What is the Progoti Scheme?
Progoti aims to provide services to employees of private companies, including factory workers, office staff, garment employees, and owners of private organisations. The employer-matching structure is what differentiates it from other UPS packages.
Private sector employees can enrol in the Progoti scheme by paying monthly instalments of Tk 2,000, Tk 3,000 or Tk 5,000, of which 50 per cent of the instalment should be paid by the employees and the rest by the companies. If a company is not a member of UPS, any employee can enrol as an individual.
The numbers are significant in terms of returns. The scheme provides a monthly Tk 1,72,327 withdrawal for life after 60 years of age if an employee joins the scheme at 18 years of age and pays instalments of Tk 5,000 per month for 42 years. Those who join later will also benefit from the scheme. After paying Tk 2,000 a month for 10 years, the beneficiary will get a monthly pension of Tk 3,060.
Furthermore, the Progoti Scheme was extended in 2026 to formally include outsourced and contractual workers – a major step in that it brings a large previously excluded workforce under retirement protection.
About the Surokkha Scheme
The Surokkha scheme includes self-employed and informal sector workers like farmers, rickshaw pullers, day labourers, blacksmiths, potters, fishermen and weavers. Also, a category for freelancers and people who work from home.
Unlike Surokkha, progress doesn’t have a matching requirement from the employer, as these workers often don’t have formal employers. The Surokkha scheme has monthly instalments of Tk 1,000, Tk 2,000, Tk 3,000 and Tk 5,000.
The pension payouts scale up quite a bit with the contribution level. If a person contributes Tk 1,000 per month for 42 years, he/she will get Tk 34,465 as a pension per month after attaining the age of 60. In case of a Tk 5,000 contribution per month, a person would get Tk 1,72,327 per month for a lifetime.
Benefits Shared by Both Schemes
There are a number of benefits common to all schemes that a subscriber joins. Subscribers are entitled to a loan against a maximum of 50 per cent of their deposit. Contributions to a pension are deemed as investments for a tax concession. A monthly pension is exempt from income tax. In case of death, the nominee of the pensioner is entitled to get the pension for the remaining period. Under the new 2026 reforms, subscribers will also be allowed to withdraw up to 30 per cent of their accumulated savings as a lump-sum gratuity on retirement and get guaranteed monthly pension payments for life from the balance.
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How to Sign Up
The process is automatic, but anyone can visit upension.gov.bd to complete the process through online banking, credit or debit card or mobile financial services. On successful completion, the subscriber is automatically provided with a unique pension ID and password to directly view their pension deposits and dividends. Those without access to the internet can register at a Union Digital Centre.
If you are a garment worker in Gazipur or a freelancer in Sylhet, Bangladesh’s pension architecture now has a dedicated package for you. The trick is to start early — the longer you contribute, the more dramatically your retirement income increases.
Summary
Progoti targets private company employees with 50:50 employer-employee contributions, while Surokkha covers informal workers and freelancers. Both offer a lifetime pension from age 60 under Bangladesh’s Universal Pension Scheme.
