LAHORE – In a move aimed at reducing the financial burden on the public exchequer, the Punjab government has announced that new recruits will now receive a lump-sum pay package instead of a basic pay scale.
This significant policy shift is part of the government’s efforts to reduce pension liabilities.
A recent notification clarified that the new policy will apply to all new recruits, while those who were appointed under the 2018 law will remain unaffected.
The new decision comes as part of a broader strategy to minimize pension-related expenses for the provincial government.
To formalize this change, the Punjab government has issued a new ordinance called the “Punjab Regularization of Service Cancellation Ordinance 2025,” which has taken effect from October 31, 2025. The ordinance has already been approved by the Governor of Punjab and published in the official Gazette.
With the enforcement of this ordinance, the 2018 permanent employment law is officially rescinded.
Furthermore, the new system eliminates pensions for future employees, signaling a major shift in the way the government handles employee benefits.
