PIA pensioners

Pakistan International Airlines (PIA) has increased pensions for its retired employees first in 2013 and then in 2019.

According to the latest notification of 2019, 25% increase was approved for the pensioners drawing pensions over 30 years while 20% increase was granted for the pensioners over the period of 20 years.

Similarly, a 15% increase was granted to the pensioners drawing from over 10 years and 10% increase was allowed to the pensioners for less than 10 years.

According to a Admin order No 21/2016 dated July 26, 2016, the salaries of general manager and above were increased with effect from October 1, 2015 @ Rs 74,000 and then further increased with effect from January 1, 2017 @ Rs 56,000, making the total increase of Rs 130,000 approximately.

But the fact is that the management should increase the pension of retired employees as per its circular No 21/2003 dated July 31, 2003.

It is mentioned in this circular that "in future revision/suitable increase in pension shall be linked with salary revision of serving employees".

The ground reality is that almost every year there is plausible increase in the pensions of federal and provincial governments employees at the time of budgets but this doesn't happen at PIA.

As per rules, all other governmental organisations give their retired employees 50% of their salaries as pensions.

This was also in practice at PIA till the end of 2003. Interestingly, the national airline gives its employees 32 percent of their total salary as pension but the formula (which was adopted in 2003) it applies in the end makes the pension calculated on their basic pay. This is not fair.

Moreover, the payment of commuted amount must be given to the retired employees after attaining the age of 73 years as in practice at all government departments.

On behalf of all retired employees of PIA, I urge the Prime Minister of Pakistan and Chief Justice of Pakistan to look into this issue and direct PIA that the pensions should be increased in line with the salary increase with the ratio of serving employees.

And in future pension increases should be made as per increases in federal budget every year by the government.