Islamabad, Mar 6, 2025: The federal government has implemented significant modifications to the pension system by revising the calculation criteria and eliminating eligibility for multiple pensions.
Under the new framework, pensions will now be computed based on the average earnings of the past 24 months rather than the last drawn salary.
Additionally, employees will no longer have the option to receive more than one pension.
However, individuals opting for voluntary retirement will not be subject to this revised methodology.
Salary increases granted in the final year of service will no longer be factored into pension calculations.
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According to the official notification, authorities will round off the number of days worked in the last month of employment as a full month for pension assessment.
Additionally, authorities will now calculate family pensions using net pension figures instead of gross values.
These reforms aim to improve pension distribution efficiency and ensure long-term financial stability.
While the government expects positive outcomes, public sector employees may oppose the changes due to concerns about their post-retirement financial security.
