Who is eligible for the new Contributory Pension Scheme?

KARACHI: Following the recent announcement of the Contributory Pension Fund Scheme, questions have emerged regarding eligibility for this scheme.

The federal government has introduced the scheme for new entrants appointed on a regular basis on or after July 1, 2024.

The Finance Division issued a notification confirming the scheme’s introduction. According to the notification, in line with the Cabinet’s decision (ECC-134/13/2024) dated June 27, 2024, the federal government has decided that the Contributory Pension Fund Scheme will apply to all civil employees of the Federal Government, including civilians paid from Defence Estimates, who are appointed on a regular basis from July 1, 2024 onwards.

Additionally, this scheme will extend to the Armed Forces for those appointed on a regular basis from July 1, 2025.

The contribution rates under this scheme are provisionally set as follows: employees will contribute 10 per cent of their basic pay, while the Federal Government will contribute 20 per cent of the employees’ basic pay. These rates are subject to change.

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