ISLAMABAD – In a move likely to benefit thousands of retired government employees, the federal government has approved a policy allowing pensioners to continue receiving their pensions even if they’re rehired—though their salaries will now be adjusted accordingly.
According to the new directive, re-employed pensioners working in key federal institutions such as the President’s Secretariat, Prime Minister’s Office, Supreme Court, Senate and National Assembly, among others, will now receive a salary that is reduced by the equivalent amount of their gross pension. The aim is to create a balanced payment structure without completely cutting off retirement benefits.
Previously, the Ministry of Finance had restricted re-employed retirees from drawing both a salary and pension simultaneously, forcing them to choose one. However, after receiving several complaints and requests from government departments—especially those requiring specialized expertise—the ministry re-evaluated its stance.
Regulatory bodies and sensitive institutions argued that this restriction made it difficult to retain or rehire competent professionals, particularly when such roles often require experience that only former employees possess. The hiring of external candidates from the private sector was also considered impractical due to concerns about conflict of interest and lack of institutional familiarity.
In response, the Finance Ministry decided to allow dual compensation in a modified form. Now, re-employed retirees can draw both income streams, but the salary will be offset by the pension amount to prevent excessive public expenditure.
