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Govt Introduces Contributory Pension Fund Scheme

The federal government has introduced a Contributory Pension Fund Scheme introduced for all the civil employees of the federal government including civilian paid from Defence Estimates who are appointed on regular basis on or after July 1, 2024.

In a an office memorandum issued on Tuesday, the Finance Division further said that this scheme will also be applicable to the Armed Forces who are appointed on regular basis on or after July 1, 2025.

Under the new scheme, the rate of contribution from the employees and the federal government will be:

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  • Contribution @ 10 percent of the Basic Pay by the employees
  • Contribution @ 20 percent of the Basic Pay of the employees by the federal government.

The finance ministry further highlighted that this rate of contribution is provisional and subject to change.

It is pertinent to mention here that back in June, the Economic Coordination Committee (ECC) of the Cabinet gave the principle approval to the Finance Division for the establishment of a Pension Fund.

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Published by
Umer Tariq