KARACHI – Sindh government scrapped controversial Contribution Pension Scheme for government employees and reinstated the traditional pension system for new recruits.
Sindh Defined Contributory Pension Scheme (SDCPS) required employees to contribute 10% of their basic salary, with the government adding 12%. The plan had replaced the old pension and gratuity system, sparking widespread debate. A formal notification was issued on November 1, 2024.
The move followed amendments to the Sindh Civil Servants Act, 1973, which had barred newly appointed staff from receiving the old pension. But nearly a year later, on September 17, 2025, the Finance Secretary issued a memorandum revoking the SDCPS, reinstating the traditional pension scheme for all new government employees.
The sudden U-turn is expected to impact thousands of provincial employees and has stirred discussions across government circles.
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