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Punjab Pension Rules Major Changes Gratuity 2024 Ordinance

Punjab Pension Rules Latest Update

by Adeel Ikram

The Punjab Civil Servants Ordinance 2023 changes the pension and gratuity systems for people who work for the Punjab government. Significant changes are coming to the civil servant gratuity in Punjab under the 2024 ordinance.

The Punjab Civil Servants Ordinance 2023 significantly changes how government workers in Punjab get their pensions and bonuses. This ordinance, which goes into force immediately, aims to update the pension system to give civil servants more options and protection.

Important Changes

Defined Contribution Pension Scheme:

The creation of a single “Defined Contribution Pension Scheme” is aimed at government workers hired after the order became law. The government and the workers will both put money into the pension account. The build-up balance could be used to make regular pension payments after retirement.

Extension of Pension Eligibility:

The law allows government workers who were fired or demoted because of misconduct also to get a pension. However, these people will mostly get a compassionate allowance, which is limited to two-thirds of the salary they would have been eligible for if they had chosen to retire independently.

Provisional Payment of Pension:

If the award of a pension or bonus is delayed for more than one month after the date of retirement or death, the government worker or their family will be given provisional bills. Any extra amounts could be taken from the final pension or gratuity amount.

Prescribing Authority:

The law set up a Prescribing Authority to determine how much pension or gratuity government workers should get.


  • Who can join the Defined Contribution Pension Scheme?

Ans: People hired by the government after the law graduated.

  • How is the Defined Contribution Pension Scheme going to pay for itself?

Ans: The government and the employees will both put money into the pension plan. The officials will decide how much to put in with the help of the prescribed authority.

  • How much is the pension for government workers hired before the law went into effect?

Ans: Existing pension plans will continue to work for government workers hired before the law.

  • What is the Compassion Allowance for Government Employees Who Were Fired or Not Given Notice?

Ans: People who have been fired or removed from their jobs will get a compassionate allowance equal to or greater than two-thirds of their salary.

  • How are you going to make the Provisional Pension Payment?

Ans: In situations where pension or gratuity payments are late, provisional bills may be made. The prescribing authority will decide the amount of the bill.

  • Who is the official person in charge of setting pensions and gratuities?

Ans: The government will set up the targeted body to decide on pensions and benefits.

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