ISLAMABAD – The federal government has introduced a new policy allowing retired employees who are re-employed to continue receiving their pensions—though they won’t be getting a full paycheck.
The updated regulation states that while pensioners who return to government service can still draw their pensions, their re-employment salary will be reduced by an amount equal to their gross pension. This decision comes as a compromise after earlier restrictions forced retirees to choose between either their pension or salary, but not both.
This restriction had drawn widespread criticism from several government bodies, particularly those reliant on experienced professionals like the Election Commission, the judiciary, and both houses of Parliament. Officials pointed out that re-employment was necessary in many areas where specialized skills are in short supply, and the prior policy made it nearly impossible to keep qualified staff.
Following these concerns, the Finance Ministry reviewed its position. In a revised directive, it clarified that pensioners rejoining public service won’t lose their pensions, but their salaries will be adjusted to avoid double benefits at the taxpayers’ expense.
The change applies across 36 federal departments, marking a significant shift in how re-employment is handled for retired personnel. It is expected to ease administrative challenges while maintaining financial discipline.