Contributory Pension Funds Scheme in Pakistan

The Government of Pakistan has introduced a Contributor Pension Fund Scheme for all new federal employees appointed on or after 1^st July, 2024, and for Armed Forced personnel from 1^st July, 2025. Employees will contribute 10% and government 20% of the basic pay towards the pension fund.

Contributory Pension Funds Scheme:

Federal Government has decided that in future, Contributory Pension Fund Scheme shall be introduced for all the Civil Employees of the Federal Government including Civilian paid from Defense Estimates who re appointed on regular basis on or after 01-07-2024. The scheme shall also be applicable to the Armed Forces who are appointed on regular basis on or after 01-07-2025.

The Rate of contribution from the employees and the Federal Government is as under: –

1. Contribution @ 10% of the Basic Pay by the employees.
2. Contribution @ 20% of the Basic Pay of the employees by the Federal Government.

This rate of contribution is purely provisional and subject to change.

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