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Sindh abolishes monthly pensions for new employees, Details inside

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Staff Reporter

2 years ago

KARACHI: The Sindh government has announced a significant overhaul of its pension system, abolishing monthly pensions for retired employees hired after July 2024.

Under the amended Civil Service Act of 1973, new employees will instead participate in the Sindh Employee Benefit Scheme.

This scheme requires both employees and the government to contribute to a fund, with employees contributing 10% of their salary and the government adding 12%.

Upon retirement, beneficiaries will receive a one-time Golden Cheque Gratuity. This change aims to alleviate the financial burden of pension payments on the provincial budget.

Key features of the new scheme include

Effective date: July 1, 2024
Eligibility: Employees hired or regularized after the commencement of the Sindh Civil Servant (Amendment) Act, 2024
Benefits: Defined Contribution Pension Scheme with employee and government contributions
Replacement: Traditional pension system phased out

The Sindh Defined Contributory Pension Scheme 2024, approved by the cabinet, will replace the traditional pension system for employees hired or regularized after July 1, 2024.

The new scheme marks a significant shift towards a contributory model, where employees and the government share responsibility for retirement benefits. This amendment is expected to bring financial sustainability to Sindh’s pension system, ensuring better management of provincial resources.

Staff Reporter