FROM PAGE b4

India, Nepal and Bhutan have already implemented the scheme. In fact, 186 countries have some kind of pension scheme for everyone.

In India, the scheme is known as the Employee Pension Scheme (EPS), which guarantees monthly pension after the retirement of the employees. The family of the employee gets the pension in case the employee expires.

Both the employee and the employer contribute at the rate of 12 per cent of the basic wages and dearness allowance per month. The government contributes 1.16 per cent of the basic pay in the pension account.

The entire 12 per cent of an employee’s contribution is added towards the employee provident fund (EPF), while 8.33 per cent of the employer’s contribution is diverted to the EPS, and 3.67 per cent is invested in the EPF. The fund is managed by a statutory body, the Employee Provident Fund Organisation.

It is always easier said than done! To implement the employee benefits, private organisations have to spend, which would naturally increase their costs. What would be the incentives for the companies to invest?

A study styled Employee Benefit Trends Study (EBTS) conducted by MetLife shows that good benefits packages contribute to increase loyalty, productivity, and job satisfaction, and reduce absenteeism and attract talents.

Studies suggest that a large number of private sector employees are worried about their healthcare, the uncertainty post-retirement and unforeseen mishap. A study shows 23 per cent of employees are less productive because of these worries. The same survey showed that 58 per cent of employees had lost sleep because of the worrying about future.

Sleepy, worried employees lack focus at work and thus are less productive. On the contrary, appropriate fringe benefits help employees reduce their stress and become more productive.

The EBTS reveals that 51 per cent of employees agree that benefits increase their productivity. The productivity rises by 20 per cent.

Another study shows that 25 per cent of companies with the largest health promotion budgets have seen a 16 per cent year-on-year reduction in productivity loss. So, increased productivity means reduced cost of production or services that eventually impacts the bottom-line positively.

Companies that offer considerate benefits are more likely to attract better talents and retain them, which eventually boils down to managing their businesses efficiently.

So, in order to safeguard private sector employees, we need a regulatory framework first. The framework will outline the minimum of benefits an organisation must ensure. The government should take immediate action to introduce the universal pension scheme.

Policy support like tax benefits and soft loans to organisations with the best of the employee benefits will also encourage private enterprises.

Concerted efforts from the regulators, thinks-tanks and employers are essential to protect the interests of millions of private sector employees who play a massive role in the county’s impressive journey towards building a prosperous Bangladesh.

The author is chairman and managing director of BASF Bangladesh Ltd. Views are personal.