ISLAMABAD: The federal government has introduced Contributory Pension Fund Scheme for the new entrants who are appointed on regular basis on or after July 1, 2024.

Finance Division notified the introduction of pension fund scheme for the new entrants. The notification stated that in pursuance of Cabinet Decision in case No ECC-134/13/2024 dated 27.06.2024, federal government has decided that in future, Contributory Pension Fund Scheme shall be introduced for all the Civil Employees of the Federal Government including Civilian paid from Defence Estimates who are appointed on regular basis on or after 01.07.2024.

This scheme shall also be applicable to the Armed Forces who are appointed on regular basis on or after 01.07.2025.

ECC decides to establish pension funds from July 1

The rate of contribution from the employees and the Federal Government is as under; (i) Contribution @ 10 per cent of the Basic Pay by the employees, (ii) Contribution @ 20 per cent of the Basic Pay of the employees by the Federal Government. This rate of contribution is purely provisional and subject to change.

Copyright Business Recorder, 2024