PIA pensions

Pakistan International Airlines (PIA) has increased pensions for its retired employees first in 2013 and then in 2019. According to the latest notification (2019), a 25 percent increase was approved for pensions being drawn over 30 years while 20 percent increase was for pensions over a period of 20 years. Similarly, a 15 percent increase was given to pensions draw from over 10 years and 10 percent increase was allowed to pensions for less than 10 years. According to an order from 2016, the salaries of general manager and above were increased with effect from October 1, 2015 and then further increased with effect from January 1, 2017, making a total increase of Rs 130,000 approximately. But the management should increase the pension of retired employees as per its circular dated July 31, 2003. It is mentioned in this circular that ‘in future revision/suitable increase in pension shall be linked with salary revision of serving employees’. The ground reality is that almost every year there is plausible increase in the pensions of federal and provincial government employees at the time of the budgets but this doesn’t happen at PIA. As per rules, all other governmental organizations give their retired employees 50 percent of their salaries as pensions.

This was also in practice at PIA till the end of 2003. Interestingly, the national airline gives its employees 32 percent of their total salary as pension but the formula (which was adopted in 2003) it applies in the end makes the pension calculated on their basic pays. This is not fair. Moreover, the payment of commuted amount must be given to the retired employees after attaining the age of 70 years as in practice at all government departments. On behalf of all retired employees of PIA, I request the prime minister of Pakistan and the chief justice of Pakistan to look into this issue.

Bashir Ahmad

Rawalpindi