The Sindh government has announced plans to amend the Civil Service Act of 1973, eliminating monthly pensions for retired employees.

Under the proposed amendment, government employees hired after July 2024 will not be entitled to pensions upon retirement.

Instead, the amendment introduces the Sindh Employee Benefit Scheme, in which both the employee and the provincial government will contribute to a gratuity plan. After retirement, employees will receive a one-time payment known as the Golden Cheque Gratuity. Contributions will be set at 12% from the government and 10% from employees.

This decision aims to alleviate the financial burden of pensions on the provincial budget, as a significant portion of funds is currently allocated to pension provisions.

Previously, the Sindh cabinet approved the implementation of the Sindh Defined Contributory Pension Scheme 2024, set to take effect on July 1, 2024, along with the addition of a new subsection to the Sindh Civil Servant Act of 1973.