Pakistan withdraws curbs on pensions for rehired retirees

Pakistan’s federal government has withdrawn two notifications that barred retired government employees from drawing a pension and salary at the same time upon re-employment, according to an office memorandum issued by the Ministry of Finance.

The ministry rescinded notifications dated April 22, 2025, and June 19, 2025, with immediate effect and circulated the decision to all federal ministries and divisions.

Under the April 22 notification, retired government servants rehired after the age of 60 were required to choose either their pension or their salary, and were prohibited from receiving both simultaneously. A subsequent notification issued on June 19 had allowed pension payments on a conditional basis, subject to a reduction in salary equal to the pension amount.

Both measures have now been withdrawn, effectively restoring the option for rehired retirees to receive their full pension along with their salary during re-employment.

The latest office memorandum nullifies all previous restrictions related to pension and salary payments for retired employees returning to government service, and takes effect immediately.