Pension and Retirement Reforms

Government Finalizes Mandatory Retirement Package for Employees

The federal government has finalized a mandatory “Retirement Package” for its employees, according to the news from media and newspaper.

Sources mentioned that this package will be implemented through changes to the Civil Servants Act, 1973, and will be applicable to all government employees without any exceptions or special favors.

Earlier, the Federal Cabinet approved an amendment to include a Compulsory Retirement Package in the existing law. This policy focuses on employees impacted by the closure of ministries, the merging of departments, and government restructuring.

Under the new rules, any civil servant whose job is eliminated will qualify for the severance package. These employees can apply to a committee formed by the Prime Minister within seven days of being notified of their dismissal. The committee will make a decision within 30 days after receiving the application.

The federal government has clearly stated that the severance package is mandatory. Interestingly, if an employee refuses the package, their employment will still end according to the new rules.

The Cabinet Committee for Disposal of Legislative Cases also reviewed and approved this amendment to the Civil Servants Act.

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