Govt announces good new for retired govt employees

ISLAMABAD:  The federal government withdrew its previous decision to limit the pension and salary benefits of its retired employees to allow retirees to process both payment streams.

As reported by the Ministry of Finance, those who are re-appointed as civil servants upon retirement will be eligible to collect their pension and salary at the same time. There are no longer any restrictions, as there were before this year.

The most recent notification will also affect the heads of federal institutions, the MP Scale Officers, and the employees who work under the Special Professional Pay Scales, who will not have to choose between the pension and the pay system.

The government had first directed through the ministry on April 22, 2025, that government employees who were rehired beyond the age of 60 years could receive either pension or salary payments, but not both.

Based on the objections raised by the Establishment Division, new guidelines were issued on the 19th of June, 2025. Under the guidelines, the ban was imposed only on the employees who had been re-employed after the 22nd of April, while the others were allowed to claim both.

Now, the Ministry of Finance has withdrawn both orders after six months. As a result, the pensions and salaries of all eligible members who have been rehired by the federal departments have now been reinstated.

The judgment is a major relief to retired employees who work on a contracted or temporary basis and is also expected to simplify administrative issues in institutions of government.