Punjab govt revises Pension Rules for Employees

Under revised rules, employees seeking voluntary retirement must now fulfill two conditions: Completion of 25 years of qualifying service and reaching a minimum age of 55  

LAHORE: (UrduPoint/UrduPoint / Pakistan Point News-Feb 24th, 2026) The Punjab government on Tuesdat introduced significant amendments to the pension rules for government employees, according to a notification issued by the Punjab Finance Department.

Under the revised rules, employees seeking voluntary retirement must now fulfill two conditions: completion of 25 years of qualifying service and reaching a minimum age of 55. Voluntary retirement will be granted based on “25 years of service or 55 years of age,” whichever occurs later.

For compulsory retirements, the pension benefits will now be applicable after 20 years of qualifying service.

The amendments also update provisions for cases involving corruption or misconduct, formally requiring completion of qualifying service to qualify for pension in such situations.

The Finance Department stated that these changes aim to improve transparency and enforce discipline within the pension system.

The notification specifies that the new rules are effective immediately.

In a related development, the Federal government has clarified pension entitlements for retired employees who are rehired.

Retired government servants reappointed after retirement will now be eligible to receive both salary and pension simultaneously.

This follows the withdrawal of two previous office memoranda issued on April 22, 2025, and June 19, 2025, which had restricted retirees from drawing both benefits.

Previously, the retirees rejoining government service after the age of 60 were required to choose between their salary and pension.

The updated rules aim to streamline pension procedures and reduce ambiguity for re-employed retirees.