Pakistan

Federal govt introduces contributory pension fund scheme: Details inside

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Web Desk

ISLAMABAD: The Federal Government has introduced a Contributory Pension Fund Scheme for all civil servants of the Federal Government including Civilians paid from Defense Estimates who are appointed on permanent basis on or after 1st July 2024.

In an office memorandum issued on Tuesday, the finance division added that the scheme will also apply to those armed forces who are deployed on a permanent basis on or after July 1, 2025.

Under the new scheme, the rate of contribution from the employees and the Federal Government will be as follows:

  • 10% contribution of basic salary by employees
  • 20% of the basic salary of the employees from the Federal Government.

The Finance Ministry further clarified that this rate of contribution is provisional and subject to change.

It may be mentioned here that in June, the Economic Coordination Committee (ECC) of the Cabinet gave in-principle approval to the Finance Division for setting up the Pension Fund.

Web Desk

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