Govt revises pension system, introduces new calculation method

Pension now based on a 24-month average salary and multiple pensions no longer allowed, as per notification.


News Desk March 05, 2025
Government announces new rules for pensioners. PHOTO: EXPRESS

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The government has announced significant changes to pension calculations, introducing new conditions and restrictions, Express News reported.

A notification issued on Wednesday stated that pension will now be calculated based on the average salary of the last 24 months, rather than the final salary. Additionally, employees will no longer be allowed to receive multiple pensions.

According to the notification, the new calculation will not apply to employees opting for voluntary retirement. Furthermore, incremental raises in the final year of service will not be included in the average pension calculation.

The government has also revised the pension increment mechanism for existing pensioners, ensuring that family pensions will now be calculated based on net pension values.

The notification provides additional clarifications:

Days worked in the retirement month will count as a full month for pension calculations.

Final-year increments will not be factored into pension calculations.

Family pensions will be determined based on net pension figures.

COMMENTS (3)

Saif ur Rehman | 1 month ago | Reply On 4th March finance division clarified that government employees who got re-employment on or after January 1 2025 have to opt one pension. Those who were serving before January 1 2025 are eligible for multiple pensions.
Titilayo Ibiok | 3 months ago | Reply Pensioners should be allowed to at least half of their total money with the PFA. The present amount of 23 000 is just very wicked. Government should look at giving people their money instead of keeping the money ey and giving them peanut. No one one can survive on 23 000 mo thly. Nobody
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