The federal government introduced a Contributory Pension Fund Scheme for all civil employees of the government appointed on or after July 1, 2024. This includes civilians paid from Defence Estimates. The scheme will extend to members of the Armed Forces appointed on or after July 1, 2025.

According to an office memorandum issued by the Finance Division on Tuesday, the scheme outlines a contribution structure where employees will contribute 10 percent of their basic pay, while the federal government will contribute 20 percent. The Finance Ministry noted that these contribution rates are provisional and may be subject to future adjustments.

This initiative follows the Economic Coordination Committee (ECC) of the Cabinet’s approval in principle, granted in June, for the establishment of a Pension Fund. The new scheme aims to provide a sustainable pension system for newly appointed federal employees, ensuring financial security in their retirement years.