ISLAMABAD (Kashmir English): The federal government has rescinded its previous decision that limited the retirement employees’ pension and salary benefits, meaning that the rehired retired employees can now get the two payments simultaneously.
As reported by the Ministry of Finance, the retired government servants who are again appointed as contract, temporary, or fixed-term employees will now be eligible for both their pension and salary at the same time. There were certain restrictions on this earlier, but now they all stand null and void.
With the latest notification, heads of federal institutions, officers holding the posts of MP Scale, and persons holding Special Professional Pay Scales will also have the benefit of the change in the policy. In other words, they will not have to choose between a pension and pay.
Firstly, the government issued guidelines by the ministry on April 22, 2025, stating that government employees who were rehired after attaining the age of 60 years were supposed to benefit from either pension or salary payments, but not both. This caused a big confusion in the government departments.
Based on some objections noted by the Establishment Division, new guidelines were also issued on June 19, 2025. These guidelines applied the restriction only to workers who were rehired on or after April 22, and workers rehired before were allowed to collect both benefits.
After six months, both of these orders have been withdrawn by the Ministry of Finance. Consequently, pension and salary benefits for former employees who have been retrenched and again hired within all federated departments are completely reinstated.
This comes as a big relief for the retired workforce working on a contract or temporary basis, and it will also ease the administrative hassles occurring in government institutions.
