Govt Withdraws Restrictions on Pension and Salary for Rehired Officials

ISLAMABAD: The federal government has withdrawn two key notifications that had restricted retired officials from receiving both pension and salary simultaneously when re-employed in government service.

The notifications, introduced earlier this year to curb public sector expenditure, were issued on April 22 and June 19, 2025, and had imposed restrictions on post-retirement employment benefits. Under the April notification, pensioners re-employed after the age of 60 were required to choose between their pension and salary, while the June revision allowed pensions alongside a reduction in salary equivalent to the pension received. Both measures have now been revoked, according to a new office memorandum from the Ministry of Finance, effective immediately.

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The policy change has been communicated to all federal ministries and divisions. The earlier restrictions had drawn attention due to their impact on retired civil servants who often return to government roles in advisory or contractual capacities while continuing to receive pension payments.

Officials stated that the original measures were aimed at promoting fiscal discipline and transparency in public sector employment, but the government has now decided to withdraw them in light of practical challenges and public sector requirements.