No more annual pension hike for Punjab govt employees

Punjab finance department ends annual pension increases for government employees, effective today.

The Punjab Treasury Department has announced the cessation of annual pension increases for government employees, a move that is expected to impact retirees significantly.

This decision, which was formalised through a notification issued by Secretary of Finance Mujahid Sher Dil, applies to three types of pensions previously eligible for annual increments.

The pension hikes, authorised under memos issued in 2011, 2015, and 2022, will no longer be applicable starting with those retiring today.

According to the 2015 circular, pension increments were issued under paragraph 1, which is now being revoked. Similarly, pension increases granted under paragraph 2 of the 2011 circular and paragraph 1 of the 2022 Finance Department letter will also be discontinued.

The Secretary of Finance has directed all departments and institutions to implement the decision and cease pension increases in compliance with the new directive issued here.

The move has been seen as a substantial blow to public sector employees, as it directly impacts their retirement benefits.

Earlier, Employees Old-Age Benefits Institution (EOBI) acting Chairman Dr. Javed Shaikh announced that they had set up a help desk every Monday at the premises of the SITE Association of Industry to assist its members in resolving their issues related to EOBI contributions.

He assured the members of the association that its representatives would be included in the board of directors of EOBI once it was reconstituted.

During his visit to the SITE industrial body, Shaikh mentioned that the EOBI system had been digitalized, and every registered unit had been provided with a user ID and password to enter employees' details and generate vouchers.

He added that only 4% of registered units from across Pakistan were audited by the department and mentioned that relaxation was being offered in the audit process. He clarified that audits from the last period would cover the next two years.

In response to a query, the EOBI acting chief clarified that government departments did not fall within the EOBI's scope. He said that he was fully aware of the employers' issues and suggested raising concerns about fixed EOBI contributions and relaxation for gratuity-paying employers with the federal government.

Shaikh revealed that the EOBI fund had stood at Rs532 billion, which had been invested in various schemes. The institution had been paying monthly pensions of Rs5 billion to registered workers, and its collection had improved for the first time in recent months.

He directed the regional head present at the meeting to contact the association first before issuing a notice under Section 81.