Islamabad, February 23, 2026 — The Supreme Court of Pakistan has ruled that suspension from service does not amount to dismissal or termination, and therefore, a suspended civil servant remains entitled to full salary, allowances, and all other service benefits during the suspension period.
In a detailed written judgment approved for reporting, the apex court dismissed the appeal filed by the Federal Board of Revenue (FBR) and upheld the decision of the Federal Service Tribunal. The verdict was delivered by a two-member bench comprising Justice Shahid Bilal Hassan and Justice Shakeel Ahmad after hearing a civil petition.
The case stemmed from an appeal filed by the FBR challenging the September 2, 2025 decision of the Federal Service Tribunal. The Tribunal had modified the departmental order and ruled that under Fundamental Rule 53, a suspended government employee is entitled to full salary and allowances. It further held that no recovery of payments made during the suspension period could be carried out unless the suspension order was formally withdrawn.
According to the court record, Respondent No. 1, who was serving as a Senior Clerk/Inspector, sought retirement after completing over 31 years of qualifying service due to prolonged illness. However, the department failed to act on his request and later directed him to appear before a medical board. The board declared him medically unfit for further service owing to multiple ailments, following which he was compulsorily retired on July 12, 2024.
Subsequently, the department treated his suspension period as extraordinary leave without pay and ordered the recovery of salary and benefits already disbursed during that time. Aggrieved, the official approached the Federal Service Tribunal, which ruled in his favor — a decision later upheld by the Supreme Court.
In its judgment, the Supreme Court observed that suspension is an interim administrative measure and does not sever the employment relationship. “Suspension merely suspends the performance of duties temporarily; it does not terminate the contract of service,” the bench noted. As long as the employment relationship subsists, the court held, the rights flowing from it — including the right to full salary and allowances — remain intact.
The court further emphasized that withholding or recovering salary without clear legal justification is contrary to law and fundamental principles of justice. It added that financial deprivation without proven misconduct runs against the demands of fairness and due process.
Concluding that the Federal Service Tribunal’s decision was lawful and well-reasoned, the Supreme Court dismissed the FBR’s appeal and upheld the entitlement of suspended officials to full pay and benefits. No order as to costs was made.
The ruling is expected to have significant implications for service matters across Pakistan, reinforcing legal protections for civil servants placed under suspension and setting a strong precedent against arbitrary financial penalties.