Bangladesh Bank has eased the rules governing incentive bonuses for bank employees, according to a circular issued on Tuesday. Under the new guidelines, banks may now offer incentive bonuses if they achieve operating profits, do not increase capital shortfalls compared to the previous year, and refrain from taking new deferred facilities from the central bank’s security deposits. The decision aims to encourage employee motivation and maintain competitiveness in the banking sector.

Previously, banks were prohibited from granting bonuses if they failed to post net profits, had capital or security deposit shortfalls, or received deferred facilities from the central bank. The new circular allows banks to provide up to one month’s basic salary as a special bonus for significant achievements, even if earlier conditions are not fully met, provided the new three criteria are satisfied.

A central bank official said the relaxation is intended to help retain skilled officers, as weaker banks often lose staff to stronger institutions. The move is expected to enhance employee engagement and sustain a competitive environment across the sector.