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With the aim of achieving more welfare at the grass root level with all the officials and employees of the government of the People's Republic of Bangladesh, a board named Bangladesh Employees Welfare Board has been formed by merging the former Government Employees Welfare Directorate and the former Board of Trustees (Welfare Fund and Group Insurance Fund).

A board called Bangladesh Employees Welfare Board Act, 2004 passed by the Bangladesh Jatiya Sangsad has been published in the Bangladesh Gazette in Registered D-A-1 Additional Issue dated 29-01-2004 with the approval of Hon'ble President. According to this law, the former government employee welfare Directorate and the former board of trustees (welfare fund and Group insurance fund) merged and started operations in 8 Divisions of the country including Dhaka city under the name of Bangladesh Employee Welfare Board.