Sindh Government to Introduce New Pension Scheme for Employees
The Sindh government has recently announced plans to amend the Civil Service Act 1973 in order to revamp the current pension system for government employees. The proposed amendment will discontinue the provision of monthly pensions to retired employees, starting from July 2024. Instead, employees will be enrolled in the Sindh Employee Benefit Scheme, where both the employee and the government will contribute to a Defined Contribution Pension Scheme.
Under the new scheme, the government and employees will contribute at a provisional rate of 12% and 10% respectively. This move aims to alleviate the financial burden on the budget, which has been heavily impacted by pension payouts in recent years.
The Sindh cabinet approved the implementation of the Sindh Defined Contributory Pension Scheme 2024, signaling a significant shift in the retirement benefits structure for civil servants. The amendment will ensure that new employees appointed after the commencement of the act will be eligible for Gratuity instead of traditional pensions.
Source: ARY News
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