Govt clarifies pension rules for retired employees

ISLAMABAD: The Ministry of Finance has released a notification about pension reforms, stating that retired workers who transfer to another organization may choose to earn a pension or a wage, but not both at the same time.

The notification states that government workers who return to any organization after retirement have the option of obtaining a pension or a salary, but not both at the same time.

The notification states that upon reemployment, retired employees will have to choose between a pension and a salary, under the reforms suggested by the Pay and Pension Commission.

On Monday, Finance Minister Muhammad Aurangzeb made a significant announcement about the FY2025–2026 budget’s increase in salaries and pensions.

Finance Minister Muhammad Aurangzeb informed the National Assembly in writing that no proposal for a pay or pension increase for government workers is being considered for the incoming fiscal year 2025–2026 budget.

He noted that the increase in hiring and employee ceiling limitations is being reviewed, but no changes to pay scales or allowances are being considered.

Finance Minister Muhammad Aurangzeb informed the National Assembly in writing that no proposal for a pay or pension increase for government workers is being considered for the incoming fiscal year 2025–2026 budget.

He noted that the increase in hiring and employee ceiling limitations is being reviewed, but no changes to pay scales or allowances are being considered.

The government’s main priorities, according to the finance minister, are stabilizing the economy and reducing spending.