The federal government has withdrawn two key notifications that had restricted the simultaneous receipt of pension and salary for retired officials re-employed in government service.
Both notifications were introduced earlier this year to curb public sector expenditure, but now revised, the 24NewsHD TV channel reported on Thursday.
According to a new office memorandum issued by the Ministry of Finance, the withdrawal applies with immediate effect and has been communicated to all federal ministries and divisions.
The notifications, originally issued on April 22 and June 19, 2025, had imposed and later modified restrictions on post-retirement employment benefits.
Under the April notification, federal pensioners re-employed after the age of 60 were barred from drawing both pension and salary at the same time and were required to choose between the two.
The government said the measure was aimed at promoting transparency and fiscal discipline in public sector employment.
The policy drew particular attention as it affected a substantial number of retired civil servants who frequently return to government roles on advisory or contractual terms while continuing to receive pension payments.
In June, the government partially relaxed the restriction by allowing pension payments on re-employment, subject to the condition that the employee’s salary would be reduced by an amount equivalent to the pension received. That conditional concession, too, has now been withdrawn.
