I would like to draw the attention of Chief Justice of Pakistan through this letter towards an injustice the retired employees of Pakistan International Airlines (PIA) have been made to face since long. 

The national airline gives its employees 32 percent of their total salary as pension but the formula (which was adopted in 2003) it applies in the end makes the pension calculated on their basic pays. This is not justice. 

As per rules all other governmental organizations give their retired employees 50% of their salaries as pensions. This was also in practice at PIA till the end of 2003. Now, the management should resort to that practice. The retired employees have been demanding since long that the airline should either give them 50 percent pension on the basic pay or make the 32 percent pension to be given on their total salaries without the said formula. 

There was only onetime increase in pensions in 2013 during the period from 2010 to 2018. Also, the management should increase the pension of retired employees as per its circular No 21/2003 dated July 31, 2003. The circular clearly mentioned that ‘in future revision/suitable increase in pension shall be linked with salary revision of serving employees’. 

The airline increased the salaries of its employees twice (October 2015 and January 2017) through admin order No 21/2016 (dated July 26, 2016) but no increase in pensions was made. 

According to the admin order No 21/2016 dated July 26, 2016 the salaries of GM and above were increased with effect from October 1, 2015 (Rs 74000) and then further increased with effect from January 1, 2017 (Rs 56000), making the total increase of Rs 130,000 approximately. 

The management should increase the pensions with the same ratio. Moreover, the payment of commuted amount must be given to the retired employees after attaining the age of 70 years as in practice in all government departments while Matured Group Insurance should be given to retired employees at the time of their retirement. 

It should be noted that the federal and provincial governments increase pensions around budget time. This exercise should also be practiced at PIA at the time of federal budgets. 

A delegation of retired employees of PIA met with the CEO of the airline sometime back who assured them of increase in pensions through an approval of the Board of Directors but this did not happen. 

It is requested to the Chief Justice of Pakistan to take suo motu on this issue in the best interest of retired employees and direct the PIA management to increase pensions as per its own circular No 21/2003. 


Lahore, July 16.