Government of Pakistan, Finance Division has issued a Notification on 12-11-2021 in connection with Revised TORs of Pay & Pension Commission 2021. The details are as under:

Revised TORs of Pay & Pension Commission 2021

The Prime Minister has been pleased to strengthen the Pay & Pension Commission notified vide Notification No.F.1(1)Imp/2020-498, dated 13-11-2020. The composition and TORs of the Pay & Pension Commission have been revised as follows:

PRIVATE MEMBERS

MEMBERS EX-OFFICIO

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2. Ishrat Hussain will advise the Commission.

3. Pay & Pension Commission shall submit its recommendations within three months.

4. The scope of work of the commission will be as follows:

The scope of work of the Commission will include federal and provincial civil servants, other government servants, civilians paid from defense estimates, all Armed Forces/Civil Armed Forces personnel and holders of the posts in Management Position Scales and employees of such public sector corporations/autonomous/semi-autonomous bodies, other than banks and DFIs, which have adopted the scheme of Basic Pay Scales in toto. Employees of Public Sector Corporations/Autonomous/Semi-Autonomous bodies who are regulated under the pay scales prescribed by these organizations and the employees governed under the Industrial Relations Ordinance, 1969 and/or whose financial terms of service are settled through collective bargaining agents, are excluded from the scope of work of the Pay & Pension Commission.

Terms of Reference of the Commission

The Terms of Reference of the commission are as follows:

• Study the adequacy of the existing Basic Pay Scale System and evaluate the current salaries of Government employees throughout the federation including the provincial government and recommend measures for its improvement and uniformity. Also, make recommendations for the streamlining of existing classification from BPS 1-22.

• Study the separation of existing Basic Pay Scales for specialized departments/occupations/cadres.
• Review of Special Scales such as Management Grades, Management Position Scales (MP Scales), Special Professional Pay Scales (SPPS), Project Pay Scales, etc. and propose measures for uniformity and improvement.
• Review of admissible regular allowances, special incentives, and all other allowances with a view to highlight prevalent distortions and recommend corrective
• To Review existing perks and facilities and make recommendations, including the possibility of their
• To align the compensation of the government employees, both the federal and provincial, with the market over a period of time. This includes the salary and monetization of the compensation. In this regard, to propose a system of incorporating pay for performance concept as the basis for future
• To propose measures as to how to merge the present allowances and ad-hoc allowances into the pay
• Propose measures to bring uniformity in the present salaries being drawn by different divisions of the government in consonance with the professional expertise of the

To research international best practices of how civil servants are remunerated and how pensions are paid; especially with regards to the countries that are in the region and similar to Pakistan but better performers.                                    ..

• Highlight existing distortions and anomalies in the pension scheme and recommend remedial measures. Verify the sustainability of the current model after critically evaluating future liabilities through an actuarial study.