F.No. 9(3)R-6/2024-100
22-April-2025
Regulations Wing, Finance Division, Government of Pakistan
Big Relief for Federal Pensioners – New Option Introduced for Re-Employed Retired Officers:
In a significant update from the Government of Pakistan, the Finance Division (Regulations Wing) has issued a fresh Office Memorandum dated April 22, 2025, changing the pension rules for retired federal employees who get re-employed or reappointed after retirement.
According to the recommendations of the Pay and Pension Commission 2020, if a pensioner of the Federal Government, after turning 60 years old, is appointed or re-employed in public service—whether on a contract basis or regular post—he or she now has the right to choose either the pension or the salary of the new employment during the service period.
This move is aimed at simplifying financial entitlements for federal retirees and ensuring flexibility in the post-retirement employment process. The government has declared that all existing rules on this subject stand amended with immediate effect. Please find notification:
Government of Pakistan
Finance Division
(Regulations Wing)
F.No. 9(3)R-6/2024-100 Islamabad, the 22nd April, 2025
OFFICE MEMORANDUM
SUBJECT: PENSION IN CASE OF RE-EMPLOYMENT/ APPOINTMENT AFTER RETIREMENT
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 pensioner of the Federal Government after the age of 60 years, is re-employed/appointed in public service after retirement whether on regular/contract basis or whatsoever mode of employment, the pensioner shall have the option to retain either his/her pension or to draw the salary of said employment during the currency of that employment.
2. Existing instructions on the subject shall stand amended to the extent of above with immediate effect.
Deputy Secretary(R-III)
Reemployment After Retirement Simplified – Choose Pension or Pay Under New Federal Rules:
This government notification is a major step toward financial clarity and transparency for retired federal government employees who take up new roles in the public sector. By allowing pensioners to opt between pension or salary, the Finance Division has responded to long-standing requests for flexibility in post-retirement appointments.
This change will benefit a wide range of retired officers, consultants, and experts who are often reappointed under different capacities but face confusion or deductions related to their pensions. The Finance Division’s new policy provides them a clear and fair choice, effective immediately.
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