Federal govt finalizes mandatory retirement scheme for employees: Here’s all you need to know

ISLAMABAD: The federal government here on Sunday finalized a mandatory “severance package” for its employees.

According to media reports, the package will be introduced through amendments to the Civil Servant Act, 1973 and apply to all government employees without any exception or preferential treatment.

The decision includes amendments to Sections 2(1) H and 11C of the Act, allowing for compulsory retirement packages for employees affected by ministry terminations, departmental dissolutions, and mergers.

The federal cabinet has already approved an amendment integrating the mandatory retirement package into the existing law.

Under the new rules, any government employee whose post has been terminated will be eligible for a severance package.

Retirement scheme

The employees shall have the right to submit their petition to the committee constituted by the Prime Minister within seven days of receiving the notification of their termination. The committee will then decide on the matter within 30 days of receiving the application.

The federal government has made it clear that the severance package is mandatory. Strangely, if a government employee refuses to accept it, their employment will be terminated under the new rules.

This amendment to the Civil Servants Act was also examined and approved by the Cabinet Committee on Legislative Affairs.