The federal government has officially introduced a Contributory Pension Fund Scheme for new employees appointed on a regular basis from July 1, 2024. The Finance Division issued a notification stating that, following a Cabinet decision on June 27, 2024, the scheme will apply to all civil employees of the Federal Government, including civilians paid from Defence Estimates, who are appointed on or after July 1, 2024.
The scheme will also extend to members of the Armed Forces who are appointed on a regular basis starting July 1, 2025. The contribution rates for the scheme are set at 10% of basic pay from employees and 20% from the Federal Government. These rates are provisional and may be subject to future adjustments.
