Web Desk — October 31, 2025
Lahore: The Punjab government has taken a major step to control pension liabilities by abolishing the Punjab Regularization of Service Act 2018, meaning newly hired contract employees will not qualify for a pension even after regularization.
Under the new policy, departmental recruitments will shift from basic pay scales to a lump-sum salary package, aiming to reduce the financial strain on the provincial treasury from rising pension expenditures. The decision, effective immediately, bars future departments from granting permanent status to contractual staff under the old framework.
A notification clarifies that all actions already completed under the 2018 Act—such as prior regularizations—will remain intact and unaffected. The original Act, passed in April 2018, had allowed the regularization of around 200,000 contract workers, primarily in education and health sectors, but explicitly excluded their prior service from counting toward pension benefits.
This reform is part of broader fiscal measures to make public sector spending sustainable, following earlier announcements like a 10% ad hoc relief for civil servants and a 5% pension hike for retirees. Officials emphasize it streamlines hiring while protecting long-term budgetary health.
