News

KP Announces New Salary & Pension Payment Rule

The Khyber Pakhtunkhwa government has announced a new rule prohibiting the release of salaries and pensions before the 1st of every month. The Finance Department said early payments made at the end of October created administrative complications, prompting the province to enforce a strict monthly schedule.

KP has been reviewing its payment procedures to streamline financial workflows and reduce delays in government processing. The move also aligns with the province’s shift toward digital governance, including plans for a paperless pension system.

In its notification, the Finance Department instructed all institutions to ensure that salaries and pensions are issued only on the 1st, warning that non-compliance may cause further administrative issues.

The department noted,

“All relevant bodies must strictly adhere to the new directive to avoid disruptions in the salary process.”

The decision aims to improve financial discipline, ensure smoother monthly budgeting, and prevent irregular disbursement cycles across government departments.

Earlier, KP approved the Ehsaas e-pension system, set to become operational on January 1, 2026. Under this digital platform, employees will be able to submit pension cases online six months before retirement. The system will completely replace the paper-based process and offer a fully web-based workflow for new pensioners.

The provincial government says the shift will modernize pension management and eliminate delays, marking a major step toward e-governance in KP.