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Retirement period extension by 2 years, 3% reduction in pension proposed

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Digital Desk

The Ministry of Finance sent a three-point summary to the Establishment Division, proposing to adjust the pension to the last three years’ salary of service and cut the pension of early retirees by 3%.

The proposal for pension adjustment was rejected by the Establishment Division. However, it approved to increase the retirement age from 60 years to 62 years.

READ MORE: Government workers will not receive any more raises in pay and pension

The Establishment Division expressed its consent to the proposal to increase the retirement age to 62 years to temporarily get rid of the burden of pension payments to reduce the payment burden on the exchequer.

After obtaining approval from the Ministry of Law and Economic Coordination Committee (ECC) of the Establishment Division, the Ministry of Finance will send the summary to the Federal Cabinet for final approval.

Digital Desk

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