LAHORE – The government of Punjab officially repealed Regularization of Service Act 2018, ending pension benefits for newly recruited contract employees, even if they are later regularized.
According to government notification, new departmental recruitments will now be offered lump-sum pay package instead of traditional basic pay scale. The move aims to reduce the financial burden on the state in terms of pension liabilities.
The notification further clarified that actions already completed under the 2018 law will remain unaffected.
To formalize the change, the provincial administration issued Punjab Regularization of Service Repeal Ordinance 2025, which came into effect on October 31, 2025, after Governor’s approval and publication in the official gazette.
With ordinance, 2018 law on permanent employment has been officially abolished, and the pension system for new employees has been scrapped.
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