Pension Reform Amendments 2024

Islamabad – The Establishment Division of government of Pakistan has made amendments in the pension reform in 2024. On January 19, 2024, cabinet secretariat issued a notification regarding Pension Reform Amendments 2024:

As per the notification:

1. The matter of framing of rules on pay and allowances, retirement benefits etc. and other financial terms and conditions of service of Government Servants primarily falls under the domain of Finance Division in terms of Rule 12 (h) of Part-B read with Sr. no 12 (16) of schedule of Rules of Business 1973.

2. The establishment division having the responsibility vide Sr. no. 10 (1) of the schedule-II of the rules of Business, 1973 for regulation of recruitment and determination of terms and conditions of service to civil posts in connection with the affairs of the Federation submits the following with regard to proposal at para-6 (i) of the draft summary:

  • The proposal that the government employees shall be entitled to a gross pension based on 70% of average pensionable emoluments drawn during the last thirty-six months of service before retirement will be a matter of concern for employees who are promoted in the last year of their service. The calculation of pension on the average pensionable emoluments from the last thirty-six months will place them at a disadvantage vis-a-vis others due to the lower average value.
  • The proposal at Sr. No. 2 of the draft notification relating to early retirement reduction/penalty of 3% per year is too excessive & needs to be revisited as there are instances where the Government Servants have genuine reasons to opt for early retirement.
  • The proposal at Sr. No. 8 of the draft notification relating to annual increase in pay seems to be misplaced in the notification.

3. It is also relevant to mention that there has been a discussion of increasing the age of retirement from 60 to 62 in the past as an option to reduce the burden of pension liabilities. Finance Division may consider this option to avoid adverse impact of proposed pension reforms on the morale of the Government Servants.

Further, the proposals at pars 6 (ii) & (iii) of the draft Summary are supported by this Division.
Finance Division.

Find the issued notification below:

Also Read:


I am interested in writing content for educational purpose.

Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x