Tuesday, July 1, 2025
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Government Revamps Retirement and Pension Scheme

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The Pakistani government has introduced significant changes to the retirement and pension scheme as part of the Budget 2024, aimed at alleviating the financial strain on the federal government.

Under the new regulations, government employees who retire and then rejoin government service will only be eligible to receive a pension from one department. Previously, retirees could receive pensions from both their previous and current departments.

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Additionally, pensions will now be paid to the family of a deceased pensioner for 10 years, an extension from the previous shorter duration.

In cases where both husband and wife are government employees, they will continue to receive both pensions if one of them passes away post-retirement.

These changes come in response to the increasing burden of pension payments on the federal government, contributing to the country’s budget deficit.

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