Employee Pressure Forces Sindh to End New Pension Plan

The Sindh government has abandoned its contributory pension scheme, reversing a policy launched only a year ago to reduce pension burdens.

Under the Sindh Defined Contributory Pension Scheme (SDCPS), employees were to contribute 10% of their basic salary while the government added 12%.

The system was expected to create long-term savings and ease pressure on provincial finances. However, unions criticized the plan as unfair, saying it diluted employees’ retirement security.

The provincial cabinet, led by Chief Minister Murad Ali Shah, had approved the scheme in September 2024 and amended the Sindh Civil Servants Act to implement it.

But on September 17, 2025, the Finance Department issued an order canceling the scheme and restoring the old pension system.

Last month, government employees across Sindh staged rallies and sit-ins after walking off work, following the Sindh Employees Alliance’s call for a province-wide protest against the pension reforms.

Union leaders had said the policy stripped staff of pension entitlements, the Disparity Reduction Allowance, and retirement benefits from group insurance.

They demanded that the Sindh Civil Servants (Amendment) Act, 2024, be rolled back, along with restoration of job quotas for heirs of deceased employees and group insurance facilities.

The protesting workers warned that demonstrations would continue until the government issued an official notification reversing the reforms.