Future KP Govt Employees Won’t Have Pension, Gratuity Facility

By Web Desk– Khyber Pakhtunkhwa establishment department has drafted a bill to discontinue pension and gratuity benefits for future government employees after retirement amid fears that the province’s pension liability will reach Rs300 billion in the next decade.

Following the cabinet’s approval, the proposed KP Civil Servant Amendment Act, 2022, will be submitted to the provincial assembly for mandatory approval.

In the draft amendment, section 19 of the KP Civil Servant Act 1973 entitling government employees to pension or gratuity on retirement has been replaced with a new section providing for a contributory pension fund for future employees in public sector departments and organizations.

The KP Civil Servants Amendment Bill 202 stipulated that any person appointed on a regular basis to a service or post, on or after the commencement of the amendment bill, shall, for all intents and purposes, be a civil servant, except for the purpose of pensions and gratuities, shall be entitled to receive the amount contributed by him to the contributory provident fund, along with the government’s contributions to his account in the fund,” read Section 2 of the amendment.

Those who were employed prior to the enactment of the proposed law shall, however, be entitled to receive pension and gratuity as permissible under the pension rules.