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The Punjab government has introduced a major policy shift that eliminates pension benefits for future provincial employees under a new ordinance aimed at restructuring its recruitment system.
The Punjab Regularisation of Service Repeal Ordinance 2025, enforced on October 31, has annulled the Punjab Regularisation of Service Act 2018. The government says the move is intended to ease growing financial pressure, particularly the rising pension liabilities that have burdened the provincial budget. The ordinance was formally presented in the Punjab Assembly on Monday and marks a fundamental change in how new employees will be hired.
Under the revised framework, departments will now appoint staff on lump sum pay packages rather than the traditional basic pay scale system. Individuals hired on contract will continue in that status throughout their employment and will no longer be eligible for pension benefits. This model seeks to reduce the long term fiscal commitments associated with public sector payouts.
Previously, the 2018 law allowed contractual workers to be considered for permanent roles after four years of service, provided they met the required qualifications and performance standards. It also outlined processes for appointments, pay structures, and seniority rules. With the new ordinance in effect, these provisions have been eliminated.
Despite the changes, uncertainty remains regarding employees who were hired before the ordinance was enacted. Some civil servants argue that the government should either provide regular employment pathways or introduce more competitive salary packages to maintain an efficient workforce. They believe such measures would help improve the quality and stability of public services across the province.
