The Sindh government has withdrawn its contributory pension scheme and restored the old pension system for newly recruited provincial employees.
In September 2024, the provincial cabinet had approved the Sindh Defined Contributory Pension Scheme (SDCPS), requiring employees to contribute 10% of their basic salary monthly while the government deposited 12%.
The scheme was formally notified on November 1, 2024, after amendments to the Sindh Civil Servants Act, 1973. The system was introduced to manage the growing pension liabilities faced by the provincial exchequer.
However, it sparked strong opposition from employee unions, who argued that the plan shifted the burden onto workers while weakening their long-term security.
Now, one year later, the Finance Department has issued a memorandum rescinding the earlier notification. This decision means new employees will once again fall under the traditional pension and gratuity system, ensuring uniform treatment of government workers.
Read More: KP Rolls Out AI-enabled Paperless Pension System
Earlier this month, Khyber Pakhtunkhwa approved an ambitious shift to digital pensions, a move officials say will redefine service delivery for retired government employees.
CM Ali Amin Gandapur had given the green light to the Ehsaas e-Pension System, which will become operational on January 1, 2026.
Once launched, it will completely phase out manual pension processing. The new platform introduces a fully paperless pension mechanism.
Six months before retirement, employees will file their cases digitally, submitting scanned documents through a secure portal. The system will generate automated tasks for relevant officers, track progress, and ensure compliance within set deadlines.
