Old Pension System Restored for New Employees as Government Withdraws One-Year Policy – September 2025 Update
The federal government has decided to withdraw the one-year pension policy that was introduced in 2024. In September 2025, officials confirmed that the old pension system has been fully restored for new employees, bringing relief to thousands of workers who were uncertain about their retirement benefits.
یہ فیصلہ ملازمین کے حق میں ایک بڑا قدم قرار دیا جا رہا ہے کیونکہ پرانے پنشن سسٹم کے تحت سرکاری ملازمین کو مستقل پنشن اور دیگر فوائد فراہم کیے جاتے ہیں جو کہ نئے پالیسی کے تحت محدود کر دیے گئے تھے۔ حکومت کا کہنا ہے کہ اس فیصلے سے سرکاری ملازمین کو مالی تحفظ دوبارہ حاصل ہوگا اور ان کا اعتماد بحال ہوگا۔
Background of the One-Year Pension Policy
The pension reforms of 2024 were aimed at reducing the growing financial burden on the national exchequer. Under the revised policy, new employees were restricted to a contributory pension system where benefits were limited and dependent on employee contributions.
However, this move faced strong resistance from employee unions and civil service associations. They argued that the new model weakened job security and reduced motivation for government service.
Old Pension Benefits Restored
With the September 2025 decision, the government announced the restoration of the old defined-benefit pension scheme. This means that all new employees hired after 2024 will now be entitled to:
- Lifetime monthly pension
- Family pension for dependents in case of the employee’s death
- Annual increments and medical benefits
- Gratuity and lump sum retirement packages
This decision ensures that government employees regain full retirement security, just like those who were hired before the controversial reform.
Impact on Employees and Government
The restoration is being seen as a victory for employees, but experts also warn of its impact on public finances. Pension liabilities are already a significant burden, and the return to the old scheme may further increase the fiscal deficit.
Still, the government has promised to explore alternative funding mechanisms to balance financial stability with employee welfare.
Employee Reactions and Public Response
Unions and associations welcomed the move, calling it a “historic correction”. Many employees stated that this policy change would improve morale, trust, and performance in the public sector.
The public also sees this as a positive step for worker rights, though economists remain divided over its long-term sustainability.
Conclusion
The government’s reversal of the one-year pension policy marks a significant shift in labor and financial management. By restoring the old benefits for new employees, authorities have addressed the concerns of workers and ensured long-term retirement security. However, maintaining this system will require careful fiscal planning to avoid economic strain.
