Pension-Pay & Allowances

Notification / OM No. F.No. 9(3)R-6/2024-401 Dated 01-January-2025 Notification Issued By: Regulations Wing, Finance Division, Government of Pakistan Government of Pakistan Introduces New Pension Regulations for Transparency: The Government of Pakistan, through the Finance Division (Regulations Wing), continues to prioritize the enhancement of policies related to public service pensions. As part of these ongoing efforts and following the recommendations of the Pay and Pension Commission-2020, significant changes have been introduced regarding the calculation of pensionable emoluments. These revisions aim to establish a fairer and more standardized method of calculating pensions, ensuring consistency and transparency in financial matters for retiring employees. This notification highlights the updated framework for pension calculation, effective immediately. Notification Describes; Government of PakistanFinance Division(Regulations Wing) F.No. 9(3)R-6/2024-401 Islamabad, the 1st January, 2025 OFFICE MEMORANDUM Subject :-       CALCULATION OF EMOLUMENTS FOR THE PURPOSE OF PENSION The undersigned is directed to refer to the subject noted above and to state that, on the recommendations of Pay and Pension Commission-2020, it has been decided that henceforth, Pension shall be calculated on the basis of average of pensionable emoluments drawn during last 24 months of service prior to retirement. 2.     Existing instructions on the subject shall stand amended to the extent of above with immediate effect. Deputy Secretary(R-III) Conclusion: This amendment serves as a vital step toward improving the pension system, ensuring a more equitable and transparent approach for retiring federal employees. By calculating pensions based on the average of emoluments drawn during the last 24 months of service, the policy fosters fiscal accountability while safeguarding employee rights. All concerned departments and stakeholders are requested to implement these revised instructions promptly. For further clarification or assistance, please contact the Finance Division (Regulations Wing) at the provided number. For more information, clarification or any other question feel free to join our WhatsApp Group. We are a supportive community where members are committed to assisting one another.

Notification / OM No. F.No. 9(3)R-6/2024-403 Dated 01-January-2025 Notification Issued By: Regulations Wing, Finance Division, Government of Pakistan Finance Division Introduces New Methodology for Future Pension Increases: The Government of Pakistan, through the Finance Division (Regulations Wing), is steadfast in its commitment to enhancing pension policies for federal employees and retirees. In light of the recommendations made by the Pay and Pension Commission-2020, a revised methodology for future pension increases has been approved. This new approach seeks to establish a more transparent, structured, and equitable system for determining pension adjustments. The details of the updated methodology, designed to ensure fairness and consistency in pensionary benefits, are outlined in this notification. Notification Describes; Government of PakistanFinance Division(Regulations Wing) F.No. 9(3)R-6/2024-403 Islamabad, the 1st January, 2025 OFFICE MEMORANDUM Subject :-       FUTURE INCREASE METHODOLOGY IN PENSION The undersigned is directed to refer to the subject noted above and to state that, on the recommendations of Pay and Pension Commission-2020, it has been decided that henceforth future increase methodology in pension shall be as under. a.         The net pension [Gross Pension less Commuted portion of Pension] calculated at the time of retirement will be termed as baseline pension. b.         Any increase in pension shall be granted on baseline pension. c.         Each increase shall be maintained as a separate amount until the time, the Federal Government decides to review and authorize any additional pensionary benefits. d.         Baseline pension will be reviewed by Pay and Pension Committee after every 3 years. Provided that the current pension of existing pensioners on the date of issuance of this O.M. shall be considered as baseline pension. Provided further that baseline pension is deemed to include restored commuted portion of pension as and when restored. 2.         Existing instructions on the subject shall stand amended to the extent of above with immediate effect. Deputy Secretary(R-III) Conclusion: This revised methodology represents a significant stride toward fostering clarity and fairness in pension management. By introducing the concept of a baseline pension and periodic reviews, the policy aims to create a sustainable and accountable framework for future pension increases. All relevant departments and stakeholders are encouraged to implement these amendments promptly and in accordance with the outlined guidelines. For further information or assistance, please contact the Finance Division (Regulations Wing) at the provided phone number. For more information, clarification or any other question feel free to join our WhatsApp Group. We are a supportive community where members are committed to assisting one another.

Notification / OM No. F.No. 9(3)R-6/2024-402 Dated 01-January-2025 Notification Issued By: Regulations Wing, Finance Division, Government of Pakistan Government of Pakistan Introduces New Pension Regulations for Transparency: The Finance Division of the Government of Pakistan remains committed to ensuring transparency and efficiency in financial regulations. In line with the recommendations of the Pay and Pension Commission-2020, a significant revision has been made to streamline the process regarding multiple pensions. The new policy aims to provide clarity and ensure equitable treatment for individuals entitled to multiple pensions, while also aligning with broader fiscal responsibility goals. This notification outlines the key amendments for better understanding and implementation across relevant stakeholders. Notification Describes; Government of PakistanFinance Division(Regulations Wing) F.No. 9(3)R-6/2024 Islamabad, the 1st January, 2025 OFFICE MEMORANDUM Subject :-       MULTIPLE PENSIONS       The undersigned is directed to refer to the subject noted above and to state that, on the recommendations of Pay and Pension Commission-2020, it has been decided that henceforth, in an event where a person becomes entitled to more than one pensions, such person shall only be authorized to opt to draw one of the pensions, provided that; 2.       Existing instructions on the subject shall stand amended to the extent of above with immediate effect. Deputy Secretary(R-III) Conclusion: This notification marks a crucial step in refining pension policies to foster a more sustainable and transparent system. The revised rules are designed to address ambiguities and support equitable access to pension entitlements, reflecting the Government of Pakistan’s dedication to effective governance. All stakeholders are encouraged to carefully review and comply with the updated instructions to ensure smooth implementation. For further details or queries, please refer to the Finance Division (Regulations Wing). For more information, clarification or any other question feel free to join our WhatsApp Group. We are a supportive community where members are committed to assisting one another.