The federal government has decided to introduce a mandatory severance package for employees of ministries, divisions, and departments that will be abolished under its austerity measures.
According to official documents, a hybrid package has already been approved for employees of the Pakistan Works Department (PWD), and similar packages will be provided to workers from other institutions undergoing restructuring.
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Under the PWD package, employees with at least 10 years of service will receive a lump sum equal to 1.5 times their monthly basic salary for the remaining period until retirement. Employees with more than 10 years of service will receive a pension in addition to the lump sum.
The severance package will soon be included in the Civil Servants Act, 1973, following approval from the federal cabinet. This package will apply to employees affected by the dissolution or merger of ministries and departments.
Any employee who refuses the package will face termination. However, they may appeal to a committee set up by the prime minister within seven days, and a decision will be made within 30 days.
