Government Rewinds the Clock: Old Pension System Makes a Surprising Comeback in Bold Policy Shift

In a significant policy reversal the Sindh government has officially scrapped the Sindh Defined Contributory Pension Scheme (SDCPS) and reinstated the traditional pension system for newly appointed government employees.

The SDCPS introduced as a replacement for the old pension and gratuity framework had required employees to contribute 10% of their basic salary with the government contributing an additional 12%. Its implementation had sparked considerable debate and pushback from various stakeholders.

Originally enforced through amendments to the Sindh Civil Servants Act 1973 which had excluded new hires from the old pension benefits the scheme was formally notified on November 1, 2024. However nearly a year later on September 17, 2025 the provincial Finance Secretary issued a memorandum revoking the SDCPS and restoring the previous pension system for all new government recruits.

The abrupt policy shift is expected to affect thousands of employees across the province and has ignited widespread discussions within administrative and political circles.