The federal government has approved a policy allowing re-employed pensioners to receive both their pension and salary, with the condition that their salary will be reduced by an amount equal to their gross pension.
This move brings relief to thousands of retired employees who have returned to public service in 36 key government departments, including the President’s Secretariat, Prime Minister’s Office, Supreme Court, Senate Secretariat, National Assembly, and the Election Commission of Pakistan.
Previously, a policy from the Ministry of Finance barred such individuals from drawing both sources of income, requiring them to choose between their pension or salary. However, this restriction was seen as limiting, especially given the difficulty in hiring specialized experts from the private sector without potential conflicts of interest.
Taking these concerns into account, the Ministry has now revised its stance. Under the updated rules, re-employed retirees may continue their duties while receiving their pension, provided the equivalent amount is deducted from their salary—creating a more balanced approach to compensation.
