The Sindh government has scrapped the previously announced Contribution Pension Scheme for government employees and reinstated the old pension system for new recruits.
According to details, in September 2024, the Sindh Cabinet had approved the Sindh Defined Contributory Pension Scheme (SDCPS) for newly hired provincial employees.
Under the scheme, government servants were to receive a contributory pension instead of the traditional pension and gratuity. Each employee was required to contribute 10 percent of their basic pay monthly, while the government would add 12 percent of the basic salary. Following cabinet approval, a formal notification was issued on November 1, 2024.
During the September 2024 meeting chaired by Sindh Chief Minister Murad Ali Shah, the cabinet had also approved the insertion of a new clause into the Sindh Civil Servants Act, 1973, through the Sindh Civil Servants (Amendment) Act, 2024.
The amendment stipulated that individuals appointed or regularized as government employees after the commencement of the Act would not be entitled to the old pension and gratuity.
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However, nearly a year later, on September 17, 2025, the Finance Secretary issued an office memorandum withdrawing the notification of November 1, 2024.
As a result, the SDCPS has now been abolished, and the old pension system has been restored for new employees.
