ISLAMABAD: By granting a pension hike, the Ministry of Finance has provided retired federal government employees with much-needed respite.
Regarding this judgment, an official Office Memorandum has been released.
The memorandum said, “In order to guarantee fair treatment, it is clarified that the baseline pension for government employees who would retire on or after July 1, 2025, shall be the net pension (Gross Pension less commuted component of pension) plus subsequent increases in pension.”
The Ministry declared that the pension will now include the five prior ad hoc relief allowances that were given over time. 15% in 2011, 7.5% in 2015, 15% in 2022, 17.5% in 2023, and 15% in 2024 are among them.
Together, these five ad hoc reliefs represent a 70% increase, which will now be reflected in the federal seniors’ net pension.
A 15% rise in pensions offered by the Employees’ Old-Age Benefits Institution (EOBI) with effect from January 1, 2025, was previously agreed by the federal cabinet.
The Ministry of Overseas Pakistanis and Human Resource Development recommended the move, which will be financed using EOBI’s own funds.
The formation of a committee to implement institutional reforms in EOBI was another decision made at the cabinet meeting, which was presided over by Prime Minister Muhammad Shehbaz Sharif.
Proposals to expand old-age benefits to the informal labor sector, which includes domestic workers, agricultural laborers, and other underserved employment groups, will also be discussed by the committee.
The goal of the revisions is to guarantee that these marginalized populations get the social security benefits they are entitled to.
On a recommendation from the Ministry of Maritime Affairs, the cabinet also authorized the start of legal proceedings for the draft Sea Carriage Shipping Documents Bill, 2025.
A five-year extension of the exemption on the import of life-saving, cardiac, and anti-cancer medications used in hospitals and other healthcare facilities was granted by the cabinet on the suggestion of the Ministry of National Health Services.
The exemption is meant to guarantee the timely supply of these medications, which are thought to be essential for saving lives.
