The Sindh government has announced that it will disburse advance salaries and pensions to its Christian employees, aiming to support them in celebrating Christmas.
According to a recently issued notification, these payments are scheduled for December 18, ensuring that Christian employees can access their benefits ahead of the Christmas holiday on December 25.
This decision highlights the administration’s effort to accommodate the festive needs of its workforce.
Amendments to Pension Policies
In September 2024, the Sindh government introduced changes to the Civil Service Act of 1973, significantly altering pension provisions for new employees. As per the amendment, individuals hired after July 2024 will no longer be eligible for monthly pensions upon retirement.
Instead, these employees and the government will jointly contribute to the Sindh Employee Benefit Scheme. Upon retirement, employees will receive a “Golden Cheque Gratuity” under this scheme. Contributions are set at 12% from the government and 10% from employees.
This shift aims to reduce the financial strain pensions place on the provincial budget, as stated by officials.
Introduction of Defined Contribution Pension Scheme
Earlier this year, the Sindh cabinet approved the implementation of the Sindh Defined Contributory Pension Scheme 2024, effective July 1, 2024. The scheme introduces a new subsection to the Sindh Civil Servant Act of 1973, redefining retirement benefits for newly recruited or regularized civil servants.
Under the amendment, employees will no longer qualify for traditional pensions and gratuities. Instead, they will participate in the Defined Contribution Pension Scheme, where both employee and government contributions will accumulate in a dedicated fund. Upon retirement, participants will receive the total amount from their account, including the government’s contributions, in a structured manner.
These measures reflect the government’s strategic approach to managing long-term financial obligations while ensuring fair retirement benefits for its workforce.
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