KARACHI (June 4, 2021) The Sindh government is actively considering different proposals to reduce the pension costs of government employees.
The total number of employees of Sindh government is 493182, whose salary is Rs 23.9 billion, while pension bills are Rs 13.3 billion.
The Chief Minister said, if this continued in the next 10 years the pension bill will go up from the salary bills, hence the pension bill needs reforms.
The Cabinet approved various proposals to reduce pension bills, which are as follows:
- Early retirement will be banned, the minimum service for retirement will be 25 years and age 55 years, thereby reducing the burden of Rs 433.3 billion on government.
- The pension will be adjusted at the average of three years’ salary instead of the last paid salary, thereby reducing the burden of Rs 348.8 billion over the government.
- Family pension will be limited to wives / husbands and children under 21 years, thereby reducing the burden of Rs 112.179 billion on the government.
- The contribution of pension funds in the Sindh government will be 0.3% which will be increased to 3%.
- The revised pension scheme will be applicable only to newly hired employees.