ISLAMABAD: The federal government of Pakistan has issued a notification explaining the new pension determination procedure, which will be applicable from January 1, 2025.
The changes are aimed at streamlining the pension system and preventing multiple pensions for government employees.
According to the Finance Ministry, pension will now be calculated based on the average salary of the last two years of service. Moreover, employees will no longer be eligible to receive double or multiple pensions at the same time.
The notification clarified that the ban on double or multiple pensions will be applicable from January 1, 2025. However, federal employees who were already receiving double pensions before this date will not be affected. If such employees take up a new job after January 1, they will have to choose between salary or pension.
Furthermore, the Finance Ministry said that any additional increment received in the last year of service will not be included in the pension calculation. In another major change, family pension will now be determined based on net pension amount instead of gross pension.
The new policy will not apply to those who retired before January 1, 2025, or to employees who took leave for retirement (LPR), encashment, or early retirement.
