The Punjab Treasury Department has announced an end to annual pension increases for government employees, a decision likely to have a significant impact on retirees.
Formalized through a notification issued by Secretary of Finance Mujahid Sher Dil, this change applies to three categories of pensions previously eligible for yearly increments. The pension hikes, authorized under memos from 2011, 2015, and 2022, will no longer apply to individuals retiring from today onward.
Specifically, pension increases granted under paragraph 1 of the 2015 circular, paragraph 2 of the 2011 circular, and paragraph 1 of the 2022 Finance Department letter have all been revoked. The Secretary of Finance has directed all departments and institutions to implement the decision immediately, ceasing annual pension increments as per the new directive.
This policy shift has been perceived as a significant setback for public sector employees, directly affecting their retirement benefits.
In a related development, Employees Old-Age Benefits Institution (EOBI) Acting Chairman Dr. Javed Shaikh announced the establishment of a help desk every Monday at the SITE Association of Industry premises to address members’ issues related to EOBI contributions.
During a visit to the SITE industrial body, Shaikh highlighted the digitalization of the EOBI system, enabling registered units to use their provided user IDs and passwords to input employee details and generate vouchers. He noted that only 4% of registered units across Pakistan were audited and that the department was offering relaxed audit processes, with audits from the previous period covering the subsequent two years.
Shaikh clarified that government departments fall outside the EOBI’s jurisdiction but encouraged employers to raise concerns about fixed EOBI contributions and gratuity-related relaxations with the federal government.
He further disclosed that the EOBI fund had grown to Rs532 billion, invested in various schemes, and was disbursing Rs5 billion in monthly pensions to registered workers. For the first time, the institution reported improved collection in recent months. He also directed the regional head to coordinate with the SITE association before issuing notices under Section 81.