The government has lifted the ban on drawing pension and salary simultaneously, allowing re-employed retirees to receive both benefits. A formal notification has been issued confirming the change.
Under the new notification, retired officers returning to government service can now draw full pension alongside their salary. Previous office memorandums dated April 22 and June 19, 2025, regarding pension restrictions, have been withdrawn immediately.
The Ministry of Finance has officially canceled earlier instructions on pensions for re-employed retirees. The restored system ensures that retired staff receive full financial benefits while working again. This move reinstates the double benefit scheme for eligible employees.
Officials say the decision was made to address challenges caused by a shortage of experienced government officers. By allowing retirees to continue drawing pension along with their salary, the government aims to encourage skilled personnel to rejoin public service.
Fresh guidelines regarding the re-appointment of retired employees will be issued separately. These guidelines will provide clarity on eligibility, procedures, and financial entitlements for re-employed retirees.
According to Ministry of Finance documents, the federal government’s total pension expenditure for the current financial year has reached Rs1,055 billion. Out of this, military pensions accounted for Rs742 billion, while pensions for civilian employees stood at Rs243 billion.
The policy reversal highlights the government’s efforts to balance fiscal management with administrative efficiency. By restoring the double benefit system, officials aim to retain experienced officers and ensure smooth functioning across various departments.
Observers note that the move may also improve morale among retired personnel considering re-employment. With the ban lifted, retirees can now plan their financial future while contributing their expertise back to government service.
The Ministry of Finance emphasized that all eligible employees must follow the updated guidelines for claiming both salary and pension. The policy is expected to take immediate effect across federal ministries and attached organizations.
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This change marks a significant shift in pension policy, restoring benefits for re-employed retirees and supporting government departments in retaining skilled staff.
