The Sindh government plans to amend the Civil Service Act of 1973, eliminating monthly pensions for employees hired after July 2024, as reported by ARY News.
Sindh’s Civil Service Pension Reforms
Under the proposed amendment, new government workers will not qualify for traditional pension benefits. Instead, they will contribute to the Sindh Employee Benefit Scheme, which will provide a one-time Golden Cheque Gratuity upon retirement.
Moreover, contributions will consist of 12 per cent from the provincial government and 10 per cent from employees, aimed at easing the financial strain of pension liabilities on the provincial budget.
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This initiative follows the recent approval of the Sindh Defined Contributory Pension Scheme 2024, set to take effect on July 1, 2024.
Furthermore, the government’s decision reflects a significant shift in retirement benefits, as individuals appointed under the new guidelines will be classified as civil servants but will forgo pension and gratuity eligibility, opting instead for contributions to the Defined Contribution Pension Scheme.
