Govt Eases Pension Rules for Re-Employed Workers

The federal government has approved a measure allowing re-employed pensioners to receive their pensions while also drawing a salary, provided the salary is reduced by an amount equal to their gross pension.

This decision marks a major departure from the previous rule, which required individuals to choose between their pension and salary, creating challenges for many departments reliant on experienced personnel.

Policy Change Affects 36 Government Departments

The new rule is expected to benefit thousands of re-employed pensioners across 36 federal entities, including:

• President Secretariat
• Prime Minister Secretariat
• Supreme Court of Pakistan
• Senate Secretariat
• National Assembly Secretariat
• Election Commission of Pakistan

These departments had previously faced difficulties in retaining expert staff under the restrictive policy.

The earlier directive by the Ministry of Finance created a dilemma for skilled retirees who returned to service, as they were forced to forgo either their pension or their salary. This not only discouraged re-employment but also posed staffing challenges, particularly in regulatory bodies that require impartial and specialized personnel.

Following multiple representations and appeals, the Ministry of Finance adopted a more flexible approach: salary payments will now be made after deducting the equivalent of the gross pension. This ensures financial continuity for pensioners while maintaining transparency and fiscal accountability.

The move is being welcomed as a balanced solution that helps the government retain experienced professionals without breaching budgetary principles.