Syed Saif Ul Hassan 
Nov 02, 2025
An employee counts Pakistani rupee notes at a bank in Peshawar, on August 22, 2023. — Reuters
In a bold move to better manage the province's finances, the Punjab government has put an end to the pension scheme for certain government officials by revoking the Punjab Regularisation of Service Act 2018 with the introduction of the Punjab Regularisation of Service (Repeal) Ordinance 2025.
Has Punjab revoked pension system for government employees?
Transforming how the province manages its workforce and finances development projects, the new ordinance ensures that all future departmental recruitments will be based on a lump-sum pay package model instead of the traditional Basic Pay Scale (BPS) system.
The initiative has been brought up to lighten the financial load on the government, particularly aimed at the pension costs from the national exchequer.
The Punjab Regularisation of Service Cancellation Ordinance 2025 took effect on October 31, 2025
Experts are of the view that by adopting this approach, the government can free up substantial funds, which can then be diverted towards essential infrastructure and public development projects across Punjab.
It's worth noting that the ordinance ensures that all actions taken under the 2018 law remain valid, protecting the rights and benefits of employees who were previously regularised.
The ordinance has received the Governor of Punjab's official approval stamp, and the details have been published in the official gazette.
The new direction is believed to reshape public sector employment in Punjab, focusing on sustainability while protecting the rights of existing employees.
