Govt announces new changes in pension calculation system

ISLAMABAD: The federal government has introduced key changes in the pension system to increase transparency in the pension calculation process.

The federal government has announced significant changes in the pension system to ensure increased transparency in the pension calculation process.

According to the notification issued by the Finance Division, the revised pension system will be calculated based on the average salary of the last 24 months.

The new policy states that in calculating the average pension, additional increments earned by employees during their last year of service will no longer be considered.

It is meant to curb the artificial inflation of pension figures. There is now another method of pensions increase for existing pensioners: family pensions will now be calculated based on the net pension, thereby creating a more uniform basis for pension disbursement.

Another significant change is that the number of days worked in the retirement month will be considered a full month, providing clarity and fairness in pension calculations

These revisions are further stepping stones of the government towards an improved, transparent, and fiscally responsible pension system.

The changes apply henceforth, while the existing pensioners will continue to receive their pension under the consulted terms