KARACHI – The Sindh government has decided to end the monthly payment of pension to retired employees hired after July 2024.
For this, the provincial government would amend the Civil Service Act of 1973, making the employees hired after July 2024 ineligible to get the pension benefits after retirement.
However, the government would introduce the Sindh Employee Benefit Scheme in which both government and employees make contribution. Upon retirement, the employee will get a one-time Golden Cheque Gratuity. As per the proposed amendment, the government would contribute 12% while employee will make 10% contribution.
The provincial government aims at reducing financial burden of pensions as a significant portion of the budget is allocated for the payment of pensions.
Previously, the Sindh cabinet had approved the implementation of the Sindh Defined Contributory Pension Scheme 2024, effective from July 1, 2024.
The cabinet had also okayed the inclusion of a new subsection in the Sindh Civil Servant Act 1973.
