Re-Employed Federal Pensioners in Pakistan: The Pension or Salary Rule Was Withdrawn on 17 December 2025
The Finance Division withdrew the 2025 rule forcing re-employed federal pensioners to pick pension or salary. What still applies, and 5 steps before you sign.
If you are a federal government pensioner re-employed after 60, the 2025 rule that made you choose between your pension and your new salary is gone. The Finance Division withdrew it on 17 December 2025, "with immediate effect". A separate rule of 1 January 2025 on drawing more than one pension was not withdrawn, so check it with your accounts office before you sign a new contract.
Retired officers are often hired back on contract, as consultants, advisers or project heads. In April 2025 the federal government told them they could keep only one income: the pension or the pay. We read every Finance Division office memorandum on this subject on its own website on 6 November 2026, in order, to set out where the rule stands now.
The pension-or-salary rule ran from April to December 2025
An office memorandum, or OM, is the Finance Division's formal instruction to ministries and accounts offices. Four OMs tell this story. Here they are in date order.
| Date | Finance Division OM | What it said |
|---|---|---|
| 22 April 2025 | F.No. 9(3)R-6/2024-100 | A pensioner re-employed after 60 must choose pension or salary |
| 16 May 2025 | F.No. 9(3)R-6/2024 | Applies to re-employments made or extended on or after 22 April 2025 |
| 19 June 2025 | Clarification | A further clarification, later withdrawn |
| 17 December 2025 | No. 9(3)/REG.6/2025 | The 22 April and 19 June OMs are withdrawn with immediate effect |
The 22 April rule was wide. It covered re-employment in public service "whether on regular/contract basis or whatsoever mode of employment". For the length of that job, the pensioner had "the option to retain either his/her pension or to draw the salary". It came from the Pay and Pension Commission-2020.
The 17 December 2025 withdrawal took effect at once
The December OM is short. It refers to the OMs of 22 April 2025 and 19 June 2025 and says they "are hereby withdrawn with immediate effect". It does not replace them with a new rule. It also does not say what happens to pension held back between April and December.
So from 17 December 2025, the choice between pension and salary set by the April OM no longer applies to new or extended re-employment. If your pension was stopped under that rule, you can ask your accounts office to restore it, quoting the December OM. The Finance Division has not published guidance on arrears for the months in between.
Our earlier guide on the government pension case explains the papers an accounts office works from, which helps when you write to them.
The multiple pension rule of 1 January 2025 still stands
This is the part that confuses people. A different OM, F.No. 9(3)R-6/2024-402 of 1 January 2025, deals with "multiple pensions". The December withdrawal does not mention it. As far as the Finance Division's own list shows, it is still in force.
It says three things.
- A person entitled to more than one pension may draw only one, of their choice.
- A serving federal employee who becomes entitled to a pension shall not receive that pension.
- A spouse may still draw the family pension of a husband or wife, on top of their own pay or pension.
A Finance Division clarification of 4 March 2025 adds two points. The one-pension rule does not touch people who were already drawing more than one pension before 1 January 2025. It does apply to government employees re-employed on or after 1 January 2025.
Point 2 is the one to ask about. If you were re-employed after 1 January 2025 as a regular federal employee, your accounts office may read it as stopping your old pension. The OMs do not say whether a contract or consultancy counts as being a serving federal employee. So get the answer in writing.
What to do before you take a government job after retirement
Do not assume. Ask before your first salary, not after your pension stops.
- Get the offer letter and check whether the post is regular, contract or consultancy.
- Write to your accounts office, AGPR or the departmental office, naming the OM of 17 December 2025.
- Ask in writing whether the multiple pension OM of 1 January 2025 applies to you.
- Keep copies of all four OMs, the clarification of 4 March 2025 and your pension payment order.
- If your pension was stopped in 2025, ask for it to be restored and for any arrears.
Separately, the 2026 increase is 7 percent of baseline pension, as set out in our page on the federal pension increase 2026. Drawing pension and salary together also changes your income tax, so read our guide on filing a tax return as a pensioner.
Common questions
Can a re-employed federal pensioner draw pension and salary together in 2026?
The April 2025 rule that forced a choice was withdrawn on 17 December 2025. A separate multiple pension rule of 1 January 2025 is still listed, so confirm your own case with your accounts office.
When was the pension-or-salary rule withdrawn?
On 17 December 2025, by Finance Division OM No. 9(3)/REG.6/2025, with immediate effect.
Who did the April 2025 rule cover?
Federal pensioners re-employed in public service after age 60, on any basis, for re-employments made or extended on or after 22 April 2025.
Can I draw my late husband's or wife's family pension with my own pension?
Yes. The 1 January 2025 OM says a spouse may draw a spouse's pension in addition to their own pay or pension.
Will I get arrears for pension stopped in 2025?
The December OM does not say. Ask your accounts office in writing and keep a copy of your request.
Does this apply to provincial pensioners?
No. These are federal OMs. Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan issue their own pension rules.
What we checked and sources
On 6 November 2026 we read, on the Finance Division circulars page, the OMs of 22 April 2025, 16 May 2025, 17 December 2025, 1 January 2025 on multiple pensions and the clarification of 4 March 2025. We could not read the 19 June 2025 clarification, because its scan would not open, so we describe it only through the December OM. We have not seen any OM on arrears.
About the author
Tax, Bills and Technology Writer
Ali Akhtar is a young and curious voice here at Pakistan Era. He is currently pursuing his A-Levels and has a growing interest in Pakistan’s changing industrial landscape and educational trends. Ali likes to write in a way that helps him explain and explore the world around him. His writing reflects the perspective of the new generation navigating the evolving trends of Pakistan where technology, youth innovation, and shifting opportunities are reshaping the country’s future.
