Government revises pension calculation system

ISLAMABAD: The federal government has introduced key changes in the pension system to bring more transparency to the pension calculation process.

According to the notification issued by the Finance Division, the pensions will be calculated based on the average salary of the last 24 months. This adjustment aims to reduce the financial burden on the state.

Under the new rules, employees will not be allowed to receive multiple pensions. However, this policy will not apply to those opting for voluntary retirement.

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According to the government’s notification, any additional increments received in the last year of service will not be included in the average pension calculation system.

Additionally, a new mechanism has been set for pension increases for existing pensioners.

Under the revised regulations, family pensions will be calculated based on net pension. Also, the number of days worked in the retirement month will be considered a full month.