Quetta: The Government of Balochistan has issued a notification abolishing the traditional pension system for newly recruited provincial government employees, introducing a contributory pension model starting from 2025.
According to the notification, the new policy will apply only to employees who join provincial government departments from 2025 onward, while existing employees will continue to receive pensions under the old system.
Under the revised policy, all permanent provincial government employees recruited after 2025 will contribute 10 percent of their monthly salary toward their pension fund. In addition, the Government of Balochistan will add 12 percent to the fund.
The combined 22 percent contribution will accumulate in a pension fund throughout the employee’s service period. At the time of retirement, the total accumulated amount in the fund will be provided to the employee as pension benefits.
Officials say the new system is designed to replace the previous pension mechanism under which the Government of Balochistan paid the entire pension amount after retirement.
Under the earlier pension structure, retired government employees typically received around 60 to 70 percent of their last drawn salary as monthly pension, fully funded by the provincial government.
The new contributory model links pension benefits directly to the amount saved during the employee’s service period. The government’s 12 percent contribution will function as an additional financial return on the employee’s savings, increasing the total pension fund.
The reform is part of broader financial management efforts aimed at reducing the long-term pension burden on the provincial budget while introducing a savings-based retirement system for future public sector employees in Balochistan.
