Restructuring, rightsizing: Four packages prepared for affected employees

ISLAMABAD: Four financial packages of compensation have been prepared for the employees affected by closure or merger of government institutions as a result of right-sizing and restructuring. A separate financial package has been proposed for PWD employees. It will come into effect after the approval of federal cabinet.

According to a lump sum package, the employees with ten years of service will be paid a gross salary per year for all the completed years of service. Employees with 10 to 20 years of service will get one-and-a-half gross salary for every completed year. Employees with more than twenty years of service will be paid two gross salaries for every completed year.

The second package is compensation pension/gratuity. Under this package, employees with less than five years of service will not get any benefits. Employees with five to ten years service will receive gratuity at the rate of basic pay for each completed year. Employees with more than ten years of service will get pension.

An option has been proposed by the Establishment Division. For ten years of service, it proposes 0.25 percent or 0.50 percent per month of gross salary of remaining service. Employees with ten to 20 years of service should be paid 0.25 percent or 0.50 percent of monthly gross salary for the remaining service, or 0.50 percent of monthly gross salary for the completed service. Over 20 years of service, 100 to 200pc of pension should be paid till the age of 60 years.

A hybrid financial package has also been prepared. According to this package, for ten years of service, one-and-a-half gross salary (lump sum) will be paid per year for the remaining service.

For service above ten years, one-and-a-half gross salary for each remaining year, and secondly monthly pension from the date of implementation of the financial package.

It has been recommended PWD employees be given hybrid financial package.