KARACHI: The Sindh government has decided to cancel the Sindh Defined Contributory Pension Scheme (SDCPS) for provincial government employees and restore the old pension system for new employees.
According to details, the Sindh cabinet had approved the SDCPS in September 2024 for newly recruited provincial employees. Under this scheme, instead of the traditional pension and gratuity, employees were to receive a contributory pension.
As per the plan, each government employee was required to contribute 10% of their basic salary every month, while the government would add 12% of the employee’s basic salary to the fund. After the cabinet’s approval, a formal notification for the scheme was issued on November 1, 2024.
The cabinet, chaired by Sindh Chief Minister Syed Murad Ali Shah, had also approved an amendment to the Sindh Civil Servants Act 1973 to include a new clause for the SDCPS 2024.
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According to the proposed amendment, anyone appointed or regularized as a government employee after the enforcement of the Sindh Civil Servants (Amendment) Act 2024 would be considered under the contributory pension system instead of the traditional pension and gratuity.
However, after one year, on September 17, 2025, the Finance Department issued an office memorandum, withdrawing the earlier notification of November 1, 2024. This officially ended the SDCPS, bringing back the old pension and gratuity system for new government recruits.
