• Employees to pay 10pc, govt 12pc
• Pension liabilities rise to Rs1.055tr in 2024-25, driven by armed forces pensions

ISLAMABAD: With some discretionary changes, the government announced on Friday that federal employees will contribute 10 per cent of their pensionable pay to qualify for a 12pc contribution from the public exchequer under the newly formalised contributory pension fund scheme. The total contribution rate will thus be 22pc, replacing the traditional pension system for new entrants.

The Ministry of Finance (MoF) published the “Federal Government Defined Contribution (FGDC) Pension Fund Scheme Rules 2024” under the Public Finance Management Act 2019, which regulates the scheme according to the Voluntary Pension System Rules 2005 and Non-Banking Finance Companies and Notified Entities Regulations 2008. These rules supersede an earlier MoF order of August 2024, which had set the government’s contribution at 20pc.

On Aug 20, 2024, the MoF initially announced the introduction of the contributory pension scheme for new........

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