Severance Packages for Federal Government Employees in Pakistan
Introduction
The Federal Government of Pakistan has been considering various severance packages for its employees, as outlined in a draft summary presented to a committee. These packages aim to provide financial compensation to employees who are affected by restructuring initiatives.
Lump Sum Package
- Up to 10 years of service: 1 gross salary for each year completed
- 10 to 20 years of service: 1.5 gross salaries for each year completed
- Above 20 years of service: 2 gross salaries for each year completed
Compensation Pension/Gratuity Package
- Less than 5 years of service: No benefit
- 5 to 10 years of service: Gratuity of one basic pay for each completed year
- More than 10 years of service: Pension
Options Developed by Establishment Division
- Up to 10 years of service: 0.25 or 0.5 Gross Salary for remaining months of service
- 10 to 20 years of service: 0.25 Gross Salary for remaining months of service OR 0.5 Gross Salary for completed months of service
- Above 20 years of service: 100-200% pension till superannuation
Hybrid Severance Package
- Up to 10 years of service: 1.5 Gross Salaries for each remaining year (Lump sum)
- Above 10 years of service: 1.5 Gross Salaries for each remaining year (Lump sum) and Per month Pension w.e.f. date of severance
Finance Division’s Recommendations
- Hybrid Severance Package for Pak-PWD employees: The Finance Division has recommended that the Hybrid Severance Package be approved for the employees of Pak-PWD.
- Adoption of the Severance Package for future restructuring initiatives: The Finance Division has also proposed that the aforementioned Severance Package be adopted for all future restructuring initiatives of the Federal Government.
Table of Severance Packages
| Package Type | Years of Service | Severance Package |
|---|---|---|
| Lump Sum | Up to 10 | 1 gross salary/year |
| Lump Sum | 10 to 20 | 1.5 gross salaries/year |
| Lump Sum | Above 20 | 2 gross salaries/year |
| Compensation Pension/Gratuity | Less than 5 | No benefit |
| Compensation Pension/Gratuity | 5 to 10 | Gratuity |
| Compensation Pension/Gratuity | More than 10 | Pension |
| Options Developed by Establishment Division | Up to 10 | 0.25 or 0.5 Gross Salary |
| Options Developed by Establishment Division | 10 to 20 | 0.25 or 0.5 Gross Salary |
| Options Developed by Establishment Division | Above 20 | 100-200% pension |
| Hybrid Severance Package | Up to 10 | 1.5 Gross Salaries (Lump sum) |
| Hybrid Severance Package | Above 10 | 1.5 Gross Salaries (Lump sum) + Pension |
FAQs
- What is the purpose of these severance packages?
- These packages aim to provide financial compensation to employees who are affected by restructuring initiatives within the Federal Government.
- Which package is most suitable for me?
- The most suitable package depends on your individual circumstances, such as your years of service and your financial needs. It is recommended to consult with a financial advisor or HR representative to determine the best option for you.
- When will these packages be implemented?
- The implementation of these packages will depend on the approval process and the timing of restructuring initiatives.
Conclusion
The Federal Government of Pakistan is taking steps to provide financial security to its employees who may be affected by restructuring. The various severance packages proposed offer different options to suit the needs of different employees. As the implementation of these packages progresses, it will be important to monitor their effectiveness and consider making adjustments as necessary.
وفاقی حکومت نے ملازمین کے لئے پیکج تیار کر لیا ہے۔ ملازمین کو سروس سے نکالنے پر ان میں سے کوئی ایک پیکج دیا جاۓ گا۔
