ISLAMABAD: Pakistan’s federal government has introduced a policy restricting retired employees from receiving both a pension and a salary simultaneously if they are re-employed in public service.
Under the revised rules, such individuals must now choose between continuing their pension or drawing a salary during the period of their re-employment, whether on a regular or contractual basis.
The directive follows recommendations made by the Pay and Pension Commission 2020.
According to the new rules, in the case of regular or contractual re-employment or appointment, individuals will only be entitled to either a salary or a pension, not both.
“On the recommendations of the Pay and Pension Commission- 2020, it has been decided that henceforth, in an event where a pensioner of the Federal Government after the age of 60 years, is re-employed/appointed in public service after retirement whether on regular/contract basis or whatsoever mode of employment, the pensioner shall have the option to retain either his/her pension or to draw the salary of said employment during the currency of that employment,” said an Office Memorandum issued by the Finance Division.
circular_22042025The order has been issued in light of the recommendations made by the Pay and Pension Commission 2020. The ministry has formally notified all concerned departments of this amendment.
It is worth noting that the Finance Ministry has already denied reports attributing a statement to Finance Minister Muhammad Aurangzeb regarding any change in government employees’ salaries.
In a clarification, the ministry stated that the finance minister had not made any such announcement on the floor of the National Assembly. It added that reports suggesting otherwise were not based on facts.
The reports claimed that the upcoming federal budget does not include any proposal to raise the salaries and pensions of government employees.
