In a significant development, the Finance Division has issued a notification on Wednesday, July 5, 2023, announcing a substantial increase in the pension of government employees.
(more…)Tag: pension
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Pakistan Announces Pension Reforms; Abolishes Multiple Pensions
ISLAMABAD: In an effort to address the growing strain on the national budget caused by pension obligations, Finance Minister of Pakistan Ishaq Dar Saturday announced a series of pension reforms, including the establishment of a Pension Fund and the abolishment of multiple pensions for officers of grade 17 and above.
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Government Announces 18% Increase in EOBI Pension
Islamabad, June 21, 2023: In a significant move aimed at improving the financial well-being of government employees, the government of Pakistan has announced an 18% increase in the pension for pensioners of the Employees Old-Age Benefit Institution (EOBI).
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Finance Division Facilitates Early Salary and Pension Disbursement Ahead of Eid ul Azha
Islamabad, June 21, 2023: The Finance Division has announced the early disbursement of salaries and pensions for the month of June 2023, in anticipation of the upcoming Eid ul Azha celebrations.
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Pakistan Budget 2023-24: Salary and Pension Increased to Combat Inflation
Islamabad, June 9, 2023: In an effort to support government employees amidst a significant surge in inflation, Finance Minister Ishaq Dar announced an increase in salary and pension during the presentation of the budget for the fiscal year 2023-24.
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Pakistan advised to include pension income in tax regime
An international advisory firm, Adam Smith International, has recommended that Pakistan expand its income tax framework to encompass pension income.
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Pakistan announces early salary, pension for Government employees before Eid
In a recent announcement, the Pakistani government has decided to disburse the salary and pension payments for government employees ahead of Eid-ul-Fitr this month.
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Non-resident Pakistanis allowed contribution in pension funds
KARACHI: The State Bank of Pakistan (SBP) has allowed non-resident Pakistanis to contribute in pension funds.
In a circular issued to banks/Authorized Dealers (ADs) on August 05, 2022, the SBP said in order to improve the value proposition of NRP Rupee Value Account (NRVA) and facilitating the non-resident Pakistanis (NRPs), it has been decided to allow NRPs to contribute in pension funds, authorized by the Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension Funds Rules 2005 (VPS Rules), through their Authorized Dealers. Accordingly, following amendments in Foreign Exchange Regulations have been made:
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Para 8 (iv)(a) of Chapter 8- following new sub-clause has been added:
8. Contribution in units of Pension Fund authorized in terms of VPS Rules, under the management of Pension Fund Managers (PFMs) registered with SECP.
Para 8 (iv)(a) of Chapter 8- existing text has been amended as:
The transfer of funds for the above investments shall be allowed by the ADs through the special instructions received from NRVA holder in this behalf. For investments/ contribution mentioned at (1),(2),(5),(6),(7) & (8) above, the procedure prescribed for investment/ disinvestment/ redemption in Chapter 20 of the Foreign Exchange Manual shall be followed while for investment mentioned at (3) above, the terms and conditions prescribed at Annexure-A, at the end of this chapter, shall be followed.
Para 6 (B) of Chapter 20- following new clause has been added:
(IIIC) Issue of units of Pension Fund authorized by SECP in terms of Voluntary Pension Funds Rules 2005, under management of Pension Fund Managers (PFMs) registered with SECP to undertake pension fund scheme business.
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Para 9 of Chapter 20- following new clause has been added:
(E) Contribution in Units of authorized Pension Funds
NRP Rupee Value Account (NRVA) holders are allowed to contribute in pension funds, authorized in terms of Voluntary Pension Funds Rules 2005, under the management of Pension Fund Managers (PFMs) registered with SECP, through NRVA opened with an Authorized Dealer (AD) in Pakistan. Such contribution can be made in following manner:
Funds available in NRVA can be used for contribution in pension funds and payment for such contribution may be debited from the account on the specific request of the NRVA holder for onward credit to the bank account of trustee of the pension fund. The Net Asset Value (NAV) allocated with respect to each contribution along with copy of payment instrument/ details shall be provided by the PFM to the AD on the same day. PFM shall also send account statement to the AD within 24 hours of the realization of funds.
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In case of transfer of individual pension account of the NRVA holder from one pension fund to another pension fund of the same PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one pension fund to another fund) for their record of AD.
In case of transfer of individual pension account of the NRVA holder from one PFM to another PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one PFM to another PFM) for record of AD.
Redemption proceeds may be credited to respective NRVA, received from trustee of pension fund on account of redemption of units earlier contributed by participant through these accounts or bonus units issued thereon. The details of the same will be shared by the Trustee of pension fund/ PFM with the AD.
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The AD shall ensure that all issuance and redemptions are taking place at prevalent NAV announced publicly by the relevant PFM.
The banks shall maintain the complete reconciliation of amount transferred/received to/from trustee of pension fund, units contributed/redeemed by the participant there-against, and ensure the compliance of all related foreign exchange regulations.
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Sindh increases salary by 15% from July 1, 2022
KARACHI: The Sindh government on Tuesday announced a 15 per cent raise in salary of provincial government employees and 5 per cent increase in pension effective from July 01, 2022.
Sindh Chief Minister Syed Murad Ali Shah announced raise in pay and pension while presenting the provincial budget 2022-2023.
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The chief minister announced various relief measures for employees and pensioners during next fiscal year.
He said Adhoc Relief Allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of Federal Government are being merged and Revised Basic Pay Scale 2022 for Civil Servants of Government of Sindh is being introduced on the pattern of Federal Government.
Adhoc Relief Allowance at the rate of 15 per cent of Basic Pay Scales to Civil Servants of Government of Sindh w.e.f. 1st July 2022 is proposed.
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Disparity Allowance at the rate of 33 per cent of Basic Pay will be paid to Civil Servants in BPS-1 to 16 and at the rate of 30 per cent to Civil Servants in BPS-17 and above in lieu of the differential rate of Ad-hoc Relief Allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 & 2021, which are being abolished w.e.f 1st July, 2022.
Pensioners of Government of Sindh were already getting 22.5 per cent more increase in net pension than pensioners of Federal Government till February 2022. Therefore, an increase at the rate of 5 per cent of net pension will be paid to the pensioners of the Sindh Government w.e.f 1st July, 2022.
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Thus, after announcement of 10 per cent increase in net pension by Federal Government in March 2022 and enhancement of the rate of increase to 15 per cent from 1st July 2022, the pensioners of Government of Sindh will still be getting 12.5 per cent more of net pension than the pensioners of Federal Government.
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Khyber Pakhtunkhwa raises salary, pension by 15%
PESHAWAR: Khyber Pakhtunkhwa on Monday announced 15 per cent increase in salary of provincial government employees and 15 per cent increase in pension as well.
Finance Minister Taimur Salim Jhagra announced the increase in salary and pension of provincial employees while presenting the provincial budget 2022-2023.
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The minister announced Rs15 percent increase in salaries and pension of all the government employees, Rs15 percent ad-hoc relief allowance, adding the increase for grade1-19 employees besides DRA allowance.
He said risk allowance of police officials from grade 7-16 have been increased and was brought at par of DRA in line with the police martyrs package.
The Finance Minister Taimur Salim Jhagra said that Rs447.9 billion would be spent on salaries including Rs372.1 billion in settled districts and Rs75.8 billion through merged tribal districts while Rs107 billion on pension including Rs106 billion in settled districts and Rs one billion in merged tribal districts.
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He said 100 percent increase in pension expenditure have been witnessed in last couple of years, adding expenditure of pensions, which was only one percent of total KP budget expenditure in 2003-04 ie Rs0.87 billion has jumped to 14.7percent ie Rs90 billion in 2021-2022.
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He said amendment in KP Civil Servant Act 1973 has been made under which contributory and provident fund were increased for newly recruited employees under contributory pension scheme under which either lumsum amount one time or long terms investment offer would be given to retired employees.
As many as services of 63,0000 employees would be regularized including 675 adhoc doctors from July 1, 2002, regularization of 58,0000 teachers and 4079 employees of 128 projects of erstwhile Fata during 2022-2023.
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