The federal government has withdrawn the two notifications imposing restrictions on getting pension and salary for people who take up government jobs after retirement. According to a new memorandum from the Ministry of Finance, the withdrawal of these notifications will take effect immediately.
The Ministry of Finance withdrew the notification of April 22, 2025 which required retirees returning to the civil service to choose between receiving either a pension or a salary.
Under this notification, federal retirees who returned to employment after the age of 60 were prohibited from receiving pension and salary simultaneously.
Read: The government sets up a new pension plan
The federal government officially implemented the contributory pension scheme for civil servants in March, marking a major reform of the pension system. The reform aimed to slow the rise in pension spending, estimated at 1,050 billion rupees for 2024-2025, an increase of 29% compared to last year.
Under the new rules, employees would not be allowed to withdraw funds before retirement; upon retirement, they can withdraw up to 25%, with the remainder invested for 20 years or until age 80.
