Web desk: The Punjab government has taken a major policy decision to abolish the pension facility for government employees. This move is aimed at reducing the growing financial burden on the provincial exchequer.
The Punjab government has officially repealed the Punjab Regularisation of Service Act 2018.
Under the new policy, all departmental recruitments will follow a lump-sum pay package instead of the traditional basic pay scale.
The decision also states that contract employees who are later regularised will not be eligible for a pension.
The government says the move is intended to ease the financial burden on the provincial treasury from pension obligations.
Recruitments and regularisations completed under the 2018 Act will remain valid and will not be affected by the new changes.
Pension for New Employees
According to official sources, the new policy will apply only to fresh recruitments in provincial departments. While existing employees appointed under the 2018 law will continue to receive pensions.
The government clarified that contract employees who are made permanent in the future will also not be eligible for a pension under the revised system.
Under this new framework, new government employees in Punjab will be recruited on a “lump-sum” package instead of a basic salary with pension benefits.
The government says this step has been taken to control increasing pension expenditures and limit the long-term financial liabilities of the province.
Punjab Regularisation of Service Cancellation Ordinance 2025
To give legal effect to the policy, the Punjab government has issued the “Punjab Regularisation of Service Cancellation Ordinance 2025.”
The ordinance came into force on October 31, 2025, after being published in the official gazette and receiving the approval of the Governor of Punjab.
With this move, the “Regularisation of Service Act 2018” has been officially repealed, formally ending pension entitlement for new employees in the province.
Experts say this decision represents a significant shift in the government employment structure.
