Govt unveils new pension guidelines

The Ministry of Finance has issued a notification regarding pension reforms, maintaining that retired employees who join another institution can opt to receive either a salary or pension, but not both simultaneously.

According to a recent government notification, retired employees rejoining any public institution will now be required to choose between receiving a pension or a salary—they cannot receive both at the same time. This new rule aligns with the Pay and Pension Commission’s reform recommendations.

Under the revised policy, if a retired government employee is rehired, they must decide whether to continue their pension or accept a salary for the new position. This step is part of the government’s ongoing efforts to manage financial burdens and streamline expenditures.

In related news, Finance Minister Muhammad Aurangzeb made a key announcement regarding government salaries and pensions in the upcoming budget for the fiscal year 2025–26. In a written statement to the National Assembly, the minister confirmed that there is currently no proposal to increase the salaries or pensions of government employees in the next financial year.

The finance minister further stated that there are no plans to revise pay scales or allowances. However, the government is reviewing the possibility of adjusting hiring quotas and ceiling limits for public sector employees.

Aurangzeb clarified that the government’s current focus remains on controlling unnecessary expenses and ensuring economic stability. These measures are part of broader fiscal reforms aimed at addressing Pakistan’s economic challenges.

The announcements have sparked concern among public sector workers, especially those hoping for a salary or pension increase in the new budget. Earlier, there had been protests by government servants over proposed pension reforms, highlighting the growing frustration within the public workforce.

As the budget draws nearer, all eyes remain on the government’s final decisions regarding employee benefits and economic reforms.