PENSION RULES

By
Muhammad Zafar
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 Pension not granted to all of these: Contract, Contingency and Work charge

PENSION RULES Commuted pension=Portion of Gross Pension x years earned

• PENSION:
Monthly-recurring
A periodical payment made by Government in consideration of past
service rendered by a Government servant
Qualifying for Pension

• Pension is granted on qualifying of minimum 10 years

service. Gratuity: Lump Sum payment
• After a service of five years or more but less than 10 years, a
gratuity not exceeding one month’s emoluments for each
completed year of service. If a civil servant dies in service,
the rate shall be one and a half month’s emoluments for
each completed year of service. If the emoluments of a civil
servant have been reduced during the last twelve months or
thirty six months of his service, as the case may be,
otherwise than as a penalty, average emoluments may, at
the discretion of the authority which has the power to
sanction gratuity, be substituted for emoluments.
• Emoluments=benefits+allowances
1. 5-10:- Gratutiy@ 1 Month Emol
2. If dies within 5-10 years of service, 1+1/2
3. Reduced during last 1-3 years. Average
Emoluments @ Discretion of Authority who can
sanction gratuity.
4. Invalidation: 10 years condition is exempted.
• If the civil servants are unable to work and retire on account of
invalidation due to illness, accident, earthquake or terrorism will get
complete pension benefits and the condition of ten years service
shall not apply to such cases.”
Gratutiy or pension?
• (Authority No1(1)-Reg.6/2008 dated 24-06-2008) Pension obviously
CLASSIFICATION OF PENSION:
1. Compensation Pension.
• If a Government servant is selected for
discharge owing to the abolition of a
permanent post he has the option.
i) of taking any compensation pension or gratuity
to which he may be entitled for the service he
has already rendered, or
ii) of accepting another appointment or transfer to
another establishment even on a lower pay, if
offered, and continuing to count his previous
service for pension.
Continued

• A Government servant not employed in a substantive permanent

capacity is granted Compensation Gratuity / Pension if he is
discharged after completing qualifying service of 10/25 years or more
owing to the abolition of his post or is replaced by a “qualified”
candidate.
Discharge owing to abolition of a post = 10 years = Compensation Gratuity
25= Compensation Pension
 On Medical Grounds
2. Invalid Pension.

• An invalid pension is awarded to a Government Servant on his

retirement from the public service, who by bodily or mental infirmity
is permanently incapacitated for the public service.
• The infirmity has, however, to be certified by a duly constituted
Medical Boards.
3.Retiring Pension.

• A retiring pension is granted to a Government

servant who is permitted to retire after completing
qualifying service of 25 years. or required by Govt. to
• Civil servant may opt for premature retirement by
giving a written intimation at least 3 months before
the date on which he intends to retire.
• Such intimation( Option) will be final and shall not
be allowed to modify or withdraw. However, he can
withdraw his application before former accepting
of the request by the competent authority.
4.Superannuating Pension

• A superannuating pension is granted to a Government servant who is

entitled or compelled, by rule, to retire at a particular age i.e 60
years.
5.Family Pension.

• Family pension is granted to the family of a Govt.

servant who dies before retirement.
• In case of death of a Government Servant while in
service gratuity in lieu of one fourth of the gross
pension will be allowed.
• In addition to above family pension @ 75% of the
gross pension will be admissible to the widow for
her life period or till her marriage. (Authority 2(3)-
Reg.6/2010-786 dt 5/7/2010)
• In case of death of widow, the family pension will
be admissible to the sons until the age of 21 years
or the eldest unmarried daughter till her marriage.
Assistance Package of the PM in case of in
service death
Item In Service Death Security Related
Deaths
Lump
Sum BS Amount BS Amount
Grant 1-4 200,000 1-15 500,000
5-10 300,000 16-19 1,000,000
11-15 400,000 20 & above 1,500,000
16-17 500,000
18-19 800,000
20 & above 1,000,000
75% pension to the spouse or eldest son till the
youngest child attains the age of 18 year
Normal pension to the spouse after that for life
Retention of Govt House or payment of rent for
hired house for 05 years or till the age of
superannuation which ever is earlier but for a
minimum period of 03 year
Employment for post in BPS 1-15 on two years
contract without advertisement.
For Window, Son or a Daughter
Free health facility to the widow for life and for children up to age of
18 years in Government Hospitals.
Allotment of a plot as per FGEHF policy against 2 % quota fixed for
deceased employees
Waiver of Unpaid balance of HBA sanctioned by the AGPR/Provincial
AG
Free education to one child up to the age of 18 years.
• In case of security related death, the package provides for free
education to all the children of the deceased up to age of 18 years.
The payment will be made to the students of the public schools at
the following rates:
• For Public Education System
• Class 1-8 Rs.6,000 per annum
• Class 9-10 Rs.24,000 per annum
• Class HSSC level Rs. 24,000 per annum
• For Private Education System
• Class 1-5 Rs.18,000 per annum
• Class 6-8 Rs.24,000 per annum
• Class 9-10 Rs.36,000 per annum
• Class HSSC level Rs. 48,000 per annum
• Authority:-Ministry of Education OM.No F.15-10/2005-
OS(Sch) dated 1st Aug.2007
Transportation of dead body of the Govt.
servant.

• Actual cost of transportation @ Rs.20 per KM from place of his

posting to his home town will be paid w.e.f.1.12.2006
Note
• Currently-10,000 is Fixed
Authorities empowered to grant pension

Category of officers Authority competent to

accept request for retirement

BPS 21 and above PM

BPS 17 to 20 PAO
BPS 16 HOD
BPS 1 to 15 HOD/HOO
CONDITIONS OF QUALIFYING SERVICE
• The service of an officer begins to qualify for
pension from the date he takes charge of the office
to which he is first appointed.
• The service must be under Government.
• The employment must be substantive and
permanent.
• A Government servant not employed in a
substantive permanent capacity who has
rendered more than 5 years continuous temporary
service counts such service for the purpose of
pension or gratuity.
Continued

• Only the service paid from the General Revenues

qualifies for pension.
• Foreign service also counts for pension provided
the pension contribution was paid as required
under the rules. Leave Without Pay.
• All periods of leave, other than extraordinary leave,
count as service qualifying for pension.
• The period of suspension followed by reinstatement
or superannuating counts towards qualifying
service for pension.
Continued
After a

• In case where a Government servant is compulsorily

retired following a period of suspension ordered
under Government Servants (Efficiency and
Discipline) Rules, 1973 pension or gratuity is
admissible only for the period of service rendered
excluding the period of suspension.
• Resignation of the public service, dismissal or
removal on account of misconduct, insolvency or
inefficiency or failure to pass an examination entails
forfeiture of past service. Failure.
continued

• Any interruption in the service of an officer entails

forfeiture of his past service (Art.420 of CSR.)
• The authorized leave of absence, suspension
immediately followed by reinstatement and time
occupied in transit from one appointment to
another are not treated as interruption for the
purpose of qualifying service.
• The authority who sanctions the pension may
commute retrospectively of absence without leave
into extraordinary leave.
Condonation of interruption and
deficiencies
• The authority competent to fill the appointment held by a
Government Servant at the time the condonation is applied, may
condone all interruptions in his service, provided such interruption is
not due to any fault or willful act of the Government servant, like
unauthorized absence, resignation or removal from service.
• A deficiency of a period not exceeding six months in the qualifying
service of a Government Servant shall be deemed to have been
condoned automatically. The authority competent to sanction
pension may condone a deficiency of more than six months but less
than a year, subject to the following conditions:-
• the Government servant has died while in service or has retired
under circumstances beyond his control, such as on invalidation or
abolition of his post, and would have completed another year of
qualifying service; if he had not died or retired.
• The service rendered by him had been meritorious.
• These provisions will not apply to Government Servants who have
rendered less than five years continuous service.
Emoluments reckoned for pension:
Calculated.

The term ‘Emoluments’ means the emoluments which a

Government Servant was receiving immediately before his
retirement and includes:-
• Pay as defined in FR 9(21) (a)(i).
• Personal pay.
• Technical pay.
• Special pay of all types and nature.
• Dearness Allowance.
• Increments accrued during LPR
• Senior Post Allowance in case of officers of BPS-20 and above.
Gratuity

• If a Government servant employed in a substantive

and permanent capacity in pensionable service
retires or is selected for discharge owing to
abolition of his permanent post after completing
qualifying service of 5 years but less than 10 years,
he may be granted a gratuity not exceeding one
month emoluments for each completed year of
qualifying service. If such a Government servant has
completed qualifying service of 10 years or more at
the time of his retirement or discharge, as the case
may be, he may be granted the ordinary pension.
Compensation Pension.
Rates and scale of pension:

• Pension is calculated at the rate of 70% of average

emoluments on completion of 30 years qualifying
service. Where qualifying service is less than 30
years but not less than 10 years proportionate
reduction in percentage is made.
• The pension table regulating all the four pensions
namely Compensation Pension, Superannuation
Pension, Invalid Pension and Retiring Pension is as
under:-
Completed year of qualifying Scale of pension expressed
service as fraction of a average
emolument/emoluments
10 70/300
11 77/300
12 84/300
13 91/300
14 98/300
15 105/300
16 112/300
17 119/300
18 126/300
19 133/300
20 140/300
21 147/300
22 154/300
23 161/300
24 168/300
25 175/300
26 182/300
27 189/300
28 196/300
29 203/300
30 & above 210/300
Pension Formula

LAST PAY DRAWN X 7 X LENGTH OF QUALIFYING SERVICE

300
Pension-cum-Gratuity Scheme 1954:
• In accordance with the provisions of pension-cum-
Gratuity Scheme, the payment of pension/gratuity
or both is regulated as under:-
• A Government servant who has rendered five years
qualifying service or more but less than ten years
qualifying service may be granted a gratuity not
exceeding one month emoluments for each
completed year of qualifying service.
• In case of invalidation or death the rate will be 1-
1/2 months pay for each completed year of service.
• In case a Government servant dies before his retirement, his pension
is calculated, as if he retired on invalid pension on the date following
the day of his death, and his family will be paid the gratuity
calculated on the basis of the formula i.e. 25% of gross pension. In
addition, the family will also be entitled to a monthly Family Pension
of 50% of the full amount of pension.
• The widow will be entitled to the family pension for life or till her
remarriage.
• In the case of death of widow, the family pension will be admissible
to the sons, if any, until they attain the age of 21 years and The eldest
surviving unmarried daughter till her marriage; if the eldest daughter
marries or dies the next eldest daughter till her marriage.
• Where a pensioner dies after his retirement family pension at the
rate of 50% of the pension (net or gross), as the case may be will be
paid to the widow or sons or daughters.
FAMILY

• The family for the purpose of payment of death-

cum-retirement gratuity/pension includes the
following relation of the Government servant:-
• Wife or wives in the case of male Government
Servant (Unless there is a judicial separation wife
continues to be a member of the Government
servant’s family irrespective of the fact whether she
is living with him or not).
• Husband in the case of a female Government
servant. (A female Government servant can
exclude her husband from being a member of
her family). He will be entitled to the Family
Pension for life or till re marriage.
• Legitimate children of the Government Servant.
• Widow or widows and children or deceased son
of Government servant.
Shares of family pension.

In the following order the pension will be paid to

the family members or depended relatives of the
deceased Government servant.
a) Widow/ widows of the deceased or husband of
the deceased.
Pension is equally divided amongst the wives and children not
exceeding four ( excluding sons and daughters above the age of 21
years and the married daughters). Where the number of surviving
widows and children is more than four, the pension will be divided in
such a way the each surviving widow will get 1/4th of the pension and
the balance if any, will be divided equally amongst the surviving
children
b) Eldest surviving son up to age of 21 year.
c) Eldest surviving un married daughter till her marriage. If
she marries or dies the next eldest daughter
d) Eldest widowed daughter Baywa Beti ko
e) Eldest widow of the deceased son of the Government
servant Sbse bari baywa bahu ko
f) Eldest surviving son up to the age of 21 years of a deceased
son of the Government servant Sbse barra Poota
g) Eldest surviving un married daughter up to the age of 21
years of a deceased son of the Government servant sbse bari
h) Eldest widowed daughter of a deceased son of the kanwari
upto 21
pooti
Government servant Sbse barri baywa pooti ko
Pension payable to other than family
members Ami, Abbu, Baqi reh jane wali bhaio me sbse barra upto 21, Behno me sbse
barri kanwari sister upto 21, or sbse barri baywa behn.

It is payable to the depended relatives of the deceased

government servant in the following order.
Father, mother, eldest surviving brother up to the age of 21
years .eldest surviving un married sister up to the age of 21
years and eldest surviving widowed sister
Pension will be cease to be payable as soon as a female gets
married or remarried or a brother, un married sister attains
the age of 21 years.
The pension will be payable to one member at a time. When
it is not payable to him/her due to any reason it will be paid
to the next claimant in the order of eligibility.
• Where gratuity/pension is payable to minor (s) payment is
made to a regularly appointed manager or guardian. Where
there is no guardian the sanctioning authority may allow the
payment to their mother. In case the mother is not alive or
was judicially separated from the government servant , the
sanctioning authority may nominate any suitable person to
be the guardian for the purpose. For female Government
servant the pension can be paid to the father of minor
children
• If an employee remains missing for a period of 12 months,
family pension may be allowed to his heirs as admissible
under the prescribed rules.
PENSION CALCULATION

DATA
• NAME OF GOVERNMENT SERVANT Mr. XYZ
• Post Held JS
• Department S.T.I.
• Date of Birth 5. 1. 1956
• Date of appointment 3. 1. 1980
• Date of Retirement 27.6. 2012
• EOL 10-10-1989 to 09-10-1992
• L.F.P 25-03-1988 to 24-05-1988
• Last pay drawn Rs. 59,500
• Qualification pay Rs. 1,000
• Convey Allowance 2005 Rs. 6,500
• Deputation Allowance Rs. 6,000
• Entertainment Allowance Rs. 600
• Orderly Allowance Rs .7,000
• Senior post Allowance Rs. 1,250
• Instruction Allowance 20% Rs. 5,000
• Medical Alls Rs . 5,540
• Adhoc Relief (2010) Rs. 18,467
Adhoc Relief (2011) Rs. 5,540
Adhoc Relief (20102) Rs.11,200
LAST PAY

• Pay : 59,500
• Qualification Pay : 1,000
• Sr. Post Allowance: 1,250
• Increment 2,350
Total : 64,100

Net Pay Received last = LPR+ Qualification Pay+Sr. Post Allowance+Increment

LENGTH OF SERVICE

•Date of Retirement: 2012-6-27

•Date of Appointment 1980-8-03
Length of service 31-10- 24 Length of Q.
Service
Less EOL 3-00-00 Rounded to nearest year
Q.Service 28-10-24
Say: 29 Years.
 FORMULA
Last Pay drawn x 7 X Length of Q. Service
300
64,100X 7 X 29 years = 43,374.33
300

Gross Pension: 43,374.33

Net Pension

• Net Pension i.e. 65% of the Gross Pension

i.e . 43,374.33X65% Rs.28,193.31
• 15% increase in 2010 4, 228.99
• 15% increase in 2011 4, 863.34
• 20% increase in 2012 7,457.12
• Special Pay/orderly allowance 7,000.00
51,742.76
COMMUTED VALUE OF PENSION

• 35% OF Gross Pension i.e.

43,374.33x 35% = 15,181.01
Next age Birthday =
D.O.B 5.1. 1956
D.O.R 27.8.2012
Next age Birthday 5.1.2013
Years 57 yrs
Rate = 13.9888/-
Commutation= 15,181.01 x 13.9888x12= Rs.2,548,396.35
Commutation Table under pay Scale 2001
Age next Birthday No. of years purchased Age next Birthday No. of years purchased

20 40.5043 29 33.6143
21 39.7341 30 32.8071
22 38.9653 31 32.0974
23 38.1974 32 31.3412
24 37.4307 33 30.5869
25 36.6651 34 29.8343
26 35.9006 35 29.0841
27 35.1372 36 28.3362
28 34.3750 37 27.5908
Age next Birthday No. of years purchased Age next Birthday No. of years purchased

38 26.8482 47 20.3555
39 26.1009 48 19.6653
40 25.3728 49 18.9841
41 24.6406 50 18.3129
42 23.9126 51 17.6526
43 23.1840 52 17.0050
44 22.4713 53 16.3710
45 21.7592 54 15.7517
46 21.0538 55 15.1478
Age next Birthday No. of years purchased Age next Birthday No. of years purchased

56 14.5602 65 9.9639
57 13.9888 66 9.5214
58 13.4340 67 9.0914
59 12.8953 68 8.6742
60 12.3719 69 8.2697
61 11.8632 70 7.8778
62 11.3684 71 7.4983
63 10.8872 72 7.1314
64 10.4191 73 6.7766
Grant of increase in pension to Civil Pensioners/retired Armed
Forces personnel w.e.f. 1-7-2004.

• Pensioners who retired prior to pay scale of 1994

16 %

• Pensioners who retired/ retire in/ revised pay scale of 1994 and
onward 08 %
Grant of increase in pension to Civil Pensioners
/retired Armed Forces personnel w.e.f 1.7.2005

• 10 % increase in pension will be allowed to the civil pensioners as

well as to the retired armed Forces personnel and Govt, Servants
who would retire after on or after 1.7.2005
Authority ;- Fin .Div O.M No 1(1) Imp/2005 dated 1.7. 2005
Grant of increase in pension to Civil Pensioners
/retired Armed Forces personnel w.e.f 1.7.2006
• Pensioners who retired prior to 1.5.1977
20%
• Pensioners who retired on or after 1.5.1977
15 %
• Govt. servants who would retire on or after 30.6.2006
15 %
Authority: - Fin. Div, OM No F.4 (3)-R.6/2006 dated 30.6.2006
Grant of increase in pension to Civil Pensioners
/retired Armed Forces personnel w.e.f 1st July
2008
• 20% increase in pension has been allowed w.e.f 1st July 2008 to civil
pensioners of the federal Government including civilian paid from
defence estimates as well as retired Armed forces personnel.

• Authority:- Fin. Div. Reg. wing O.M. No.F4(1)- Reg.6/2008-808 dated

30th June 2008.
Commutation to the deceased family
• The family of the deceased Government servant who after having
retirement on invalidation by Medical board but could not signed his
pension papers due to death will be entitled for the commuted value
of pension
• Authority: - Fin ,.Div. OM NO F.13(1) R.6/94 , dated 22.5.2001
Grant of commutation to the widow of Government servant
compulsory retired from government service but expired before
signing the pension/ commutation claims

• The family of the deceased Government servant who after having

compulsory retired could not signed his pension papers due to death
will be entitled for the commuted value of pension
• Authority: - Fin ,.Div. OM NO F.13(1) R.6/94/III dated 4.3.2002
Transportation of dead body of the deceased
Govt. servant by road.

• Actual cost basis but not exceeding Rs. 20 per KM w.e.f

1.12.2006
• Authority:- Fin .Div. O.M.No F.3 (2)r.10/95-672/06 dated 1.12.2006
Grant of increase in pension to Civil Pensioners
/retired Armed Forces personnel w.e.f 1.7.2006

• Pensioners who retired prior to 1.5.1977 20%

• Pensioners who retired on or after 1.5.1977 15 %
• Govt. servants who would retire on or after 30.6.2006 15 %
Authority: - Fin. Div, OM No F.4 (3)-R.6/2006 dated 30.6.2006
Grant of Commutation to the widow of Government servant
retired on invalidation by Medical board but expired before
signing the pension/ commutation claims.

• The family of the deceased Government servant who after having

retirement on invalidation by Medical board but could not signed his
pension papers due to death will be entitled for the commuted value
of pension
Authority: - Fin ,.Div. OM NO F.13(1) R.6/94 , dated 22.5.2001
Grant of commutation to the widow of Government servant
compulsory retired from government service but expired
before signing the pension/ commutation claims.
• The family of the deceased Government servant who after having
compulsory retired could not signed his pension papers due to death
will be entitled for the commuted value of pension
Authority: - Fin ,.Div. OM NO F.13(1) R.6/94/III dated 4.3.2002
REVITALIZATION OF THE CRITICAL SERVICES; INSTITUTIONAL
RESPONSE TO SECTARIAT VIOLENCE AGAINST GOVERNMENT
OFFICIALS
• Following package is provided to the families of the Government
servants whose death takes place due to sectarian violence against
Govt, servants.
• ACCOMMODATION:- the family of the deceased Govt,
servant will continue living in the Govt accommodation
till the deceased would have reached the age of
superannuation had he not died. If family is not living in
Govt. allotted house, the family will be allotted govt.
owned/hired house or paid a monthly allowance at the
prescribed rate for hiring a house at the option of the
deceased family .
• PENSION:- Full pension shall be allowed to the bereaved
family till the children of the deceased attain the age of
majority i.e.18 year.
• LUM SUM GRANT. Rs. 0.5 million to the family of the
deceased government servant with in 30 days of his
death.
• EMPLOYMENT:- Either the spouse or one child
of the deceased Government servant shall be
given employment provided she/he is qualified
for the post .
• EDUCATION :- Free education to the children of
the deceased up to the age of 25 years.
• HEALTH :- Free health facility to the family of the
deceased Government servant upto the age of
20 years.
Authority :- Finance Division OM No . 29 (1)
R.9/97-422/2001 dated 4.5.2001
Grant of increase in pension to Civil Pensioners
/retired Armed Forces Personnel w.e.f 1.7.2007

• Pensioners who retired prior to 1.7.1997

20%

• Pensioners who retired between 1.7.1997

15%
 • For the purpose of admissibility of increase in pension sanctioned the
term ‘pension’ means ‘pension’ being drawn.
• The increase will also be admissible on family pension as well as on
Compassionate allowance under CSR 353.
• The increase in pension will not be admissible on special additional
pension allowed in lieu of Pre retirement Orderly Allowance.
• In case of re-employed pensioners, the increase in pension shall not
be admissible to them during the period of their re- employment.
• Authority FD O.M. No. F.4(2)-Reg-6/2007 dated 13.7.2007.
BENEFIT OF ANNUAL INCREMENT ON
NOTIONAL BASIS
• All those Government servants who exhausted/
may exhaust the relevant pay scales may be allowed
the benefit of annual increment beyond the existing
scope of the pay scales w.e.f. 1-12-2005. There will
be no presumptive benefit on account of the
aforesaid increment prior to 1-12-2005, therefore,
no arrears shall be allowed prior to this date. The
increment may be treated as personal pay subject
to the condition that the employee concerned has
put in 6 months or more service as counts for an
annual increment unless withheld under the rules.
• The amount of the personal pay may not be reduced but treated as
part of the pay scale of the concerned government servant for the
purpose of fixation of pay, pension and recovery of house rent etc

Authority:- Fin .Div. O.M.No F.1 (6)/Imp/2005 dated 13.10.2006

10% and 15% increase in pension who
would retire on or after 1.7.2007
• 10% increase in pension allowed vide para 13 of
Finance Division’s O.M. No.1(1)-Imp/2005 dated 01-
07-2005 and 15% increase in pension allowed vide
Finance Division's O.M. No. 4(3)-Reg.6/2006 dated
30-06-2006 are also admissible to those
Government Servants who would retire on or after
01-07-2007.

Authority:- Fin .Div. O.M.No F.4(2)-Reg.6/2007

dated 11.08.2007
Government of Pakistan
Finance Division
(Regulations Wing)
***

No.F. 1 (1)-Reg.7/2002-665 Islamabad, the 11th October, 2002.

OFFICE MEMORANDUM
Subject:- POLICY GUIDELINES FOR THE PAYMENT OF PENSION
CONTRIBUTION.
The undersigned is directed to state that policy guidelines /
instructions relating to payment of pension contribution for
services rendered to government by employees of
aut6onomous / semi autonomous organization or by the
Government servants in autonomous/ semi-autonomous
organization have been issued from time to time as per
communications mentioned in the margin. It has been
observed that Ministries/ Divisions are making references to
this Division for approval of payment of pension contribution
and endorsement of sanction letters on this account.
• 2. All Ministries/ Divisions are requested to process and
decide the subject cases in the light of the parameters
prescribed under the policy enunciated in the above-
mentioned communications in consultation with AGPR, at
their own end. It is further clarified that sanctions to the
payment of pension contribution covered under the above
rules do not require any endorsement from the Finance
Division.
• (MAZAHIR HYDER)
• Section Officer (Reg.7)
•
Government of Pakistan
Finance Division
(Regulations Wing)
***

No.F. 5 (2)-Reg.7/81-1352 Islamabad, the 31ST December, 1981.

OFFICE MEMORANDUM
Subject:- PAYMENT OF PENSION CONTRIBUTION FOR
SERVICE RENDERED TO THE GOVERNMENT BY EMPLOYEES
OF AUTONOMOUS/SEMI-AUTONOMOUS ORGANIZATIONS.

The undersigned is directed to state that in the case of

Government servants sent on foreign service to
autonomous/ Semi autonomous organizations, pension
contributions at the prescribed rates are recovered from
those organizations for the period of their deputation. On
the other hand, there have been cases in which the
Government had to acquire
• the services of certain employees of autonomous/semi-
autonomous organizations for specified periods. There have
also been cases where the autonomous/ semi-autonomous
organizations had to acquire the services of some
experienced hands from the Government, who later on
where advised to resign from the Government service in
order to become regular employees of the borrowing
organizations concerned. The question as to how the period
of service rendered under the Government in such cases
should be treated for the purpose of grant of pension by the
autonomous organizations concerned has been under the
consideration of the Government for some time past. It has
now been decided that such cases should be dealt with in
the following manner:-
• (a) In the case of an employee of an autonomous/semi-
autonomous organization, who renders service in a
Government department on deputation, the concerned
department may made payment of pension
contributions to the autonomous organization
concerned at the prescribed rates, subject to the
following conditions:-
• The appointment of the individual concerned in the
Government department on deputation was made with
the consent of the head of the autonomous organization
and with the approval of the competent authority in the
Government department concerned, in accordance with
the normal procedure for making such appointments.
• The regular employees of the autonomous
organization concerned are entitled, under
specific rules of the organization for the
purpose, to the same benefits of pension as are
admissible to the civil servants of the Federal
Government, and the employee concerned had
rendered qualifying service for pension in his
parent organization before his appointment on
deputation in the Government department
concerned.
• (b) In the case of Government servant who resigns from the
public service to take up an appointment in an
autonomous/semi-autonomous organization as its regular
employee, service in which counts for pension under the
rules of that organization, his resignation may not be treated
as resignation of the public service, in terms of Article 418
(b), CSR and the autonomous organization concerned may
count Government service of such an employee for the
purpose of pension and accept the full pensionary liability;
the Government department concerned may, however, pay
pension contributions to the organization concerned at the
prescribed rates in respect of the Government service
rendered by the said employee. This will be subject to the
following conditions:-
 • The applications for appointment to the relevant post in the
autonomous organization concerned was made by the
Government servant concerned through proper channel, or it
was with the consent of the competent authority in the
Government department concerned that the new appointment
in the autonomous organization concerned was taken up.
• The Government servant concerned had, while tendering
resignation from the public service, stated clearly that he was
doing so to take up another appointment in the autonomous
organization concerned. This should be supported by his letter
of resignation and its acceptance by the competent authority.
• The service rendered by the Government servant
concerned in the previous Government department
was pensionable
• 2. These orders will be effective from the date of issue.
They will also cover, subject to the conditions specified in
para I above past cases of those employees of
autonomous/semi-autonomous organization who had
rendered service in a government department and have not
proceeded on retirement before the date of issue of this
O.M.
Sd/-
(Ali Ahmad)
D.S.
Government of Pakistan
Finance Division
(Regulations Wing)
***

No.F. 5 (2)-Reg.7/81 (Vol.II) Islamabad, the 4th Sept., 1985.

OFFICE MEMORANDUM
Subject:- PAYMENT OF PENSION CONTRIBUTIONS FOR SERVICE
RENDERED TO THE GOVERNMENT BY EMPLOYEES OF AUTONOMOUS/
SEMI-AUTONOMOUS ORGANIZATIONS.
The undersigned is directed to refer to this Division’s
office Memorandum No. F. 5 (2)-Reg. 7/81-1352 dated the
31st December, 1981, on the subject noted above, and to
state that it has been decided in consultation with the
Establishment Division that the amendment made therein
vide this Division’s O.M. No.F.5 (2)-Reg. 7/81-1168, dated the
16th November, 1982 under clause (i) thereof shall be
omitted and shall be deemed to have been so omitted ab-
initio.
2. As a result of the above amendment the words
“on deputation” wherever they occurred in the
original O.M. of 31-12-1981 shall be added and be
deemed to have been so added with effect from the
date they were deleted vide O.M. dated 16-11-
1982.
( Ali Ahmad)
D.S.
Government of Pakistan
Finance Division
(Regulations Wing)
***

No.F. 5 (2)-Reg.7/81-1168 Islamabad, the 16th Nov., 1982

OFFICE MEMORANDUM
Subject:- PAYMENT OF PENSION CONTRIBUTIONS FOR SERVICE
RENDERED TO THE GOVERNMENT BY EMPLOYEES OF AUTONOMOUS/
SEMI- AUTONOMUS ORGANIZATIONS.

The undersigned is directed to refer to this Division’s

office Memorandum No.5(2) – Reg. 7/81-1352 dated the
31st December, 1981, on the subject indicated above, and to
state that it has been decided to make the following
amendments therein with effect from the date of its issue:-
(i) The words ‘on deputation’ wherever occurring in the
said office Memorandum, may be added:-
“(ii) The autonomous organization concerned agrees to
count the service of the individual concerned under the
Government for the purpose of pension”; and
(iii) In para 1, a new clause © may be added as under:-
“© Pension contributions will be made at the rate prescribed
in this Division’s office memorandum No.F.5(5)-Reg. 7/79-
1407, dated 15-12-1981.”
( Ali Ahmad)
D.S.
Government of Pakistan
Finance Division
(Regulations Wing)
***

No.F. 5 (5)-Reg.7/79-1407 Islamabad, the 15th Dec., 1981

OFFICE MEMORANDUM
Subject:- RECOVERY OF LEAVE SALARY AND PENSION CONTRIBUTIONS
IN RESPECT OF FEDERAL GOVERNMENT EMPLOYEES ON DEPUTATION TO
FOREIGN SERVICE WITHIN PAKISTAN OR ABROAD.
The undersigned is directed to refer to FR 116 in
accordance with which the rates of contributions payable on
account of pension and leave salary shall be such as the
President may be general orders prescribe. The existing rates
are contained in Appendix 11-A, FRs & SRs Vol.II. The
question regarding revision of the rates and mode of
recovery etc., of leave salary and pension contributions has
been engaging the attention of the Government for
 some time past. It has now been decided to prescribe a uniform rate of
recovery of pension contributions at 33 1/3% of the mean of minimum
and maximum of the pay scale of the grade held by the Government
Servant concerned at the time of his proceeding on foreign service, plus
other emoluments (reckonable for pension) which would have been
admissible to him had he not been deputed on foreign service. The
above prescribed rate of pension contributions shall apply to all Federal
Government employees whether on deputation to foreign service within
Pakistan or abroad.
2. In future, the pension contributions in all cases shall be
payable by the foreign employers. However, in the case of government
servants presently on deputation to foreign service within Pakistan or
abroad, pension contributions shall be paid by case may be, according to
the agreed terms of deputation.
3. As regards leave salary contributions, it has been
decided that no leave salary contributions shall be recovered
from the foreign employers, but leave /leave salary shall be
sanctioned/paid during the period of foreign service by the
foreign employers. The Federal Government employees sent
on deputation to foreign service who, under the revised
procedure, are granted leave and paid leave salary by the
foreign employers, shall not count the period spent on
foreign service for earning leave under the Government of
Pakistan.
4. These orders shall take effect from 1.1.1982.
Formal amendments to the relevant rules shall be issued
separately.
( Ali Ahmad)
D.S.
Government of Pakistan
Finance Division
(Regulations Wing)
***

No.F. 4(1)-Reg.6/2005 Islamabad, the 5th January, 2006.

OFFICE MEMORANDUM
Subject:- GRANT OF INCREASE IN PENSION TO CIVIL
PENSIONERS OF THE FEDERAL GOVERNMENT AS WELL AS
RETIRED ARMED FORCES PERSONNEL.
The undersigned is directed to refer to Finance Division’s
O.M. No. 1(1)-Imp/2005 dated 1-7-2005 on the above
subject and to say that 10 % increase in pension allowed
vide para 13 thereof shall be regulated as under:-
The amount of this increase:
• shall be admissible on retiring pension, superannuation pension,
ordinary family pension, special family pension (excluding children
allowance), invalid pension / disability pension and compassionate
allowance granted in terms of Section 19(3) of Civil Servant Act,
1973 and Article 353 of CSR.
• Shall also be admissible to the civil pensioners of the Federal
Government residing abroad (other than India and Bangladesh) who
retired on or after 15-8-1947 and are otherwise not entitled to or
are not in receipt of pension increase under the British
Government’s pension (increases) Acts. The payment in such cases
will be made at the applicable rate of exchange.
• Shall be apportioned between Federal Government and other
Governments concerned on proportionate basis if the gross pension
sanctioned by the Federal Government is shared with the other
Governments in accordance with the rules laid down in Part-IV of
the appendix III to the Accounts Code (Volume-I).
• Shall not be reckonable for purpose of calculation of
commutation and gratuity.
• Shall not be admissible on special additional pension
allowed to retired officers in BS-20 and above equal to
pre-retirement orderly allowance.
• Shall not be admissible to re-employed pensioners
during the tenure of their re-employment.
• Sd/-
• (Syed Abdur Rahim Shah)
• Section Officer (Reg.6)
•
Government of Pakistan
Finance Division
(Regulations Wing)
***

• No.F. 5 (2)-Reg.6/2002 Islamabad, the 24th June, 2008.

• OFFICE MEMORANDUM
• Subject:- RESTORATION OF PENSION SURRENDERRED IN LIEU OF
COMMUTATION/GRATUITY
•
• The undersigned is directed to refer to para 16(e) of Finance Division’s
O.M. No. 1(5) Imp/2001, dated 4-9-2001, vide which the benefit of
restoration of surrendered portion of pension in lieu of
commutation/gratuity was withdrawn w.e.f. 01-12-2001 irrespective of
an employee,s date of retirement. The old pensioners have requested
for re-consideration of this decision; in so much as that it may not be
made applicable to Government servants who retired prior to 01-12-
2001.
• 2. The case has been reconsidered and it has been decided that all
those Government servants who retired prior to 01-12-2001, others
those who have surrendered portion of pension in lieu of
commutation/gratuity.
• 3. It has also been decided that all other benefits available under the
1994 scales shall continue for those who have opted to remain in the
1994 scales. Government servants who availed the benefit of
presumptive fixation of pay in the 2001 scales, i.e. those who retired
between 1-7-2001 to 01-12-2001 shall be governed by the pay and
Pension package of the 2001 scales.
• (Khadim Hussain)
• S.O. (Reg. 6)
•
• No. 1(1)-Reg.6/2008
• Government of Pakistan
• Finance Division
• (Regulations Wing)
• ***
• No.F. 15 (1)-Reg.6/2008 Islamabad, the 2nd July,
2008.
• OFFICE MEMORANDUM
• Subject:- MINIMUM PENSION.
• The undersigned is directed to refer to Finance Division’s
O.M. No. 9(12)-Reg.6/88-(A) dated 01-07-88 on the subject cited above
and to state that the President has been pleased to sanction with effect
from 1st July, 2008 the increase in minimum pension from Rs.300/- p.m.
to Rs.2000/- p.m. to civil pensioners of the Federal Government
including civilians paid from Defence Estimates as well as Armed Forces
Personnel.
• 2. Similarly, family pension allowed to the family of a
retired government employee including those paid from
Defence Service Estimates under the Pension-cum-Gratuity
Scheme 1954, and Liberalized Pension Rules, 1977 has also
been increased from Rs.150/- p.m. to Rs. 1000/- p.m.
• 3. Commutation of any part of the increase allowed
vide this O.M. will not be admissible.
• (KHADIM HUSSAIN)
• Section Officer (Reg.6)
•
Government of Pakistan
Finance Division
(Regulations Wing)
***

• No.F. 4 (2)-Reg.6/2007 Islamabad, the 11th August,

2007.
• OFFICE MEMORANDUM
• Subject:- GRANT OF INCREASE IN PENSION TO CIVIL PENSIONERS OF
THE FEDERAL GOVERNMENT AS WELL AS RETIRED ARMED FORCES
PERSONNEL.
• The undersigned is directed to refer to para 13 of Finance Division’s
O.M. No. 1(1)-Imp/2005 dated 01-07-2005 and O.M. No. 4(3)-
Reg.6/2006 dated 30-06-2006 on the above subject and to say that
queries from different quarter have been received in this Division, as to
whether 10% increase in pension allowed vide para 13 of Finance
Division’s O.M. No. 1(1)-Imp/2005 dated 1-7-2005 and 15 % increase in
pension allowed vide Finance Division’s O.M. No. 4(3)-Reg.6/2006 dated
30-06-2006 are also admissible to those Government Ser5vants who
would retire on or after 01-07-2007.
• 2. The matter has been considered in the Finance
Division. It is clarified that the aforesaid increases in
pension are alos admissible to those Government
Servants who retired or would retire on or after 01-
07-2007 until further orders.
• (KHADIM HUSSAIN)
• Section Officer (Reg.6)
•
Government of Pakistan
Finance Division
(Regulations Wing)
***

• No.F. 3 (20)-R-2/98 Islamabad, the 29th

December, 1999.
•
• O.M.
• Subject:- GRANT OF USUAL INCREMENT IN THE YEAR OF RETIREMENT.
• The undersigned is directed to state that after the issuance
of this Division’s Circular Office Memorandum No. F. 3 (20) R-2/98 dated
the 8th September, 1999 on the above subject, various queries have
been received from Ministries/Divisions/Departments etc. as well as
from certain retired/retiring Civil Servants. These queries have been
considered in this Division and clarifications thereof are circulated for
information of all concerned, as under:-
• The words “retiring Civil Servant” is applicable to both gazetted
and non gazetted employees. Para (i) of part-1 of this Division’s
office Memorandum No. F. 1 (36) Gaz. Imp. /73 dated 18-8-1973
may be treated as amended to that extent.
• The civil servant s retiring during the period on and from 1st of
June and fist of December of a year are entitled to the usual
annual increment.
• The amendment is equally applicable to the civil servants expired
during the above period.
• The financial effect of the amendment is admissible from the year
1998. No claim of pension/commutation prior to 01-06-1998 will
be entertained.
• (IFTIKHAR AHMAD)
• Section Officer (R-Ii)
•
Government of Pakistan
Finance Division
(Regulations Wing)
***

• No.F. 4 (1)-Reg.6/2005 Islamabad, the

5th January, 2006.
•
• OFFICE MEMORANDUM
• Subject:- GRANT OF INCREASE IN PENSION TO CIVIL
PENSIONERS OF THE FEDERAL GOVERNMENT AS WELL AS
RETIRED ARMED FORCES PERSONNEL.
• The undersigned is directed to refer to Finance Division’s
O.M. No. 1(1)-Imp/2005 dated 01-07-2005 on the above
subject and to say that 10% increase in pension allowed vide
para 13 thereof shall be regulated as under:-
• The amount of this increase;
• shall be admissible on retiring pension, superannuation pension,
ordinary family pension, special family pension (excluding children
allowance), invalid pension / disability pension and compassionate
allowance granted in terms of Section 19 (3) of Civil Servants Act,
1973 and Article 353 of CSR.
• Shall also be admissible to the civil pensioners of the Federal
Government residing abroad (other than India and Bangladesh) who
retired on or after 15-08-1947 and are otherwise not entitled to or
are not in receipt of pension increase under the British
Government’s pension (increases) Acts. The payment in such cases
will be made at the applicable rate of exchange.
• Shall be apportioned between Federal Government and other
Governments concerned on proportionate basis if the gross pension
sanctioned by the Federal Government is hared with the other
Governmetn6s in accordance with the rules laid down in Part-IV of
the appendix III to the Accounts Code (Volume-I).
• Shall not be reckonable for purpose of calculation of
commutation and gratuity.
• Shall not be admissible on special additional pension
allowed to retired officers in BS-20 and above equal to
pre-retirement orderly allowance.
• Shall not be admissible to re-employed pensioners
during the tenure of their re-employment.
• (Syed Abdur Rehim Shah)
• S.O. (Reg. 6)
•
Government of Pakistan
Finance Division
(Regulations Wing)
***

• No.F. 13 (16)-R-6/2003 Islamabad, the 29th February,

2008.
•
• OFFICE MEMORANDUM
• Subject:- RESTORATION OF PENSION SURRENDERED IN LIEU OF
COMMUTATION / GRATUITY.
• The undersigned is directed to refer to Finance Division’s O.M. No. F. 5(2)-
Reg.6/2002 dated 2nd July, 2002 on the above subject and to state that in
pursuance of the Judgment dated 21-4-2007 passed by Federal Service Tribunal
in civil petition No. 495®CS/2003, it has been decided that increase in pension
admissible in the respective financial year be allowed on the restored commuted
portion of pension to all those Government servants who retired on or before
30-06-2001 with effect from the date on which the commuted value of pension
has been restored.
• (MUHAMMAD SALEEM SALEEMI)
• D.S. (R.III)
RESTORATION OF PENSION SURRENDERED IN LIEU OF
COMMUTATION / GRATUITY

• All those Government servants who retired prior to 01-12-2001,

other those who have opted to remain in pay scales of 1994, shall be
entitled to the restoration of surrendered portion of pension in lieu
of commutation/gratuity.

• Authority: No.F.5(2)-Reg.6/2002 dated 2-7-2002

Increase in pension

• Increase in pension admissible in the respective financial year be

allowed on the restored commuted portion of pension to all those
Government Servants who retired on or before 30-06-2001 with
effect from the date on which the commuted value of pension has
been restored.
• (Authority No 13(16)-Reg.6/2003 dated 29-02-2008)
• In case of death of Government servant during service, the benefits
of restoration of commuted value/gratuity portion on completion of
required period is also admissible to the widows/families of the
deceased Government servants w.e.f. 01-06-1994.
• (Authority No 4(10)-Reg.6/94-III dated 08-09-2008)
Revision of Pension 2010

• 15% increase in the pension is admissible to the pensioners who

would retire on or after 1-7-2010

Reference : (Para 2 of Fin. Divn. O.M. No. F4(1)-Reg-6/2010/721

dated 5-7-2010)
Revision of Pension 2011

• Para 12-Increase in the pension at the following rates w.e.f. 1st July,
2011, until further orders:-
• i) Pensioners who retired on or after 01-07- 2002 @
15% of the net pension.
• ii) Pensioners who retired on or before 30-06- 2002
@ 20% of net pension.
• Para-14- However, 15% increases in pension allowed vide
para-2 of the Finance Division O.M. No.F.4 (1) Reg-6/2010/721
dated 05-07-2010 shall continue to be admissible to the new
pensioners who would retire on or after 01-07-2011.
• Para-15- 15% increase in pension allowed vide para 12 (1)
above shall also be admissible to pensioners who would retire
on or after 1-7-2011.
• 16- “Net pension” means pension being drawn minus
‘Medical Allowance’ which shall be continued to be
admissible at the level of its admissibility as on 30-06-
2011.
• 17- The Increase shall be admissible on Family
Pension.
• 19-Increase shall not be admissible on Special
Additional Pension allowed in lieu of pre-retirement
Orderly Allowance.
• 20-The increase shall not be admissible during the
period of their re-employment contract, but the
same shall be allowed after the termination of the
re-employment contract.
• 21- The benefit of increase in pension sanctioned in
this O.M. shall also be admissible to those Civil
Pensions of the Federal Govt. who are residing abroad
(other than those residing in India and Bangladesh)
who retired on or after 15-08-1947 and are not
entitled to, or are not in receipt of pension increase
under the British Government’s Pension (Increase)
Acts. The payment shall be made at the applicable
rate of exchange.

Authority MOF No 1(5)imp/2011-419 Dt 4.7.2011

Medical allowance for the pensioners

• Para 22 (1)Medical allowance is admissible to the

existing retired civil servants in BPS1-15 @ 25% and
in BPS-16-22 @ 20% of the net pension will be
admissible at the frozen level of its admissibility on
30-06-2011.
• (2) Alll civil servants in BPS 1-15 & BPS16-22 who
shall retire on or after 01-7-2011 onward shall be
allowed medical allowance @ 25% & 20% of the net
pension, respectively and shall stand frozen at the
same level.

Authority MOF No 1(5)imp/2011-419 Dt 4.7.2011

Increase in pension 2012

• 1) 20% increase of net pension w.e.f. 1-7-2012 to all civil

pensioners as well as armed forced personals
• 2) 15% increase in pension allowed vide para 2 of Fin. Divn.
O.M. dated 5-7-2010 and 15 % increase in pension as
allowed vide para 15 of Fin. Divn. O.M. dated 4-7-2011 shall
be admissible to the new pensioners who would retire on or
after 1-7-2012.
• 3) 20% increase in pension will also be admissible to the
pensioners who would retire on or after 1-7-2012.

• Authority: F.D. OM No. 4(1)-Reg.6/2012-1144 dated 2-7-2012)

Revised Basic Pay Scales 2011

BPS Min. Incr Max. Stages

1 4800 150 9300 30
2 4900 170 10000 30
3 5050 200 11050 30
4 5200 230 12100 30
5 5400 260 13200 30
6 5600 290 14300 30
7 5800 320 15400 30
8 6000 350 16500 30
9 6200 380 17600 30
10 6400 420 19000 30
11 6600 460 20400 30
12 7000 500 22000 30
13 7500 550 24000 30
14 8000 610 26300 30
15 8500 700 29500 30
16 10000 800 34000 30
17 16000 1200 40000 20
18 20000 1500 50000 20
19 31000 1600 63000 20
20 36000 2350 68900 14
21 40000 2600 76400 14
22 43000 3050 85700 14
Requirements of Pension Papers
• Application is on proper Form CSR-25 (Revised).
Three sets are required.

• All relevant columns/spaces are filled up and signed

by the applicant as well as head of the department.

• Office Order/Notification of retirement.

• No demand certificate from Department;/ Estate Officer.

• L.P.C. and Service Statement.

• Service Book in original containing all entries up to retirement,

verification of services and verification of pay fixation.
• Undertaking for recovery of Government dues.

• Certificate about non indulgence in Politics.

• Two sets of thumb and finger impression.

• Two sets of Specimen signature of applicant.

• List of family members showing relationship, ages and
whether dependent or otherwise (Two sets).

• Two photographs of the applicant.

• Two photocopies of National Identity Card.

• Account No. and name of National Bank Branch from

where applicant wishes to draw pension.
• Invalid certificate in original in case the applicant is retired on medical
grounds.

• Each and every paper is attested by the Department.

Additional Requirements for
Family Pension
• Death certificate in original.
• Two photographs of Widow.
• Descriptive Roll of Widow.
• Nomination/Guardian ship for minor children.
• Succession Certificate.
• Non separation/ no re- marrige certificate
• Certificate to the effect that she is only widow/nominated widow for
drawal of Pension.
• Previous Pension Book in Original is to be attached with pension papers
with a last payment certificate recorded by the Bank for payment of
lifetime arrears where P.P.O. was issued.
• Each and every paper is attested by the Department concerned.
Thank You