In a significant policy shift, the federal government has announced that retired government employees rehired after the age of 60 will only be eligible to receive either a pension or a salary—not both.

According to an office memorandum issued by the Finance Ministry, this decision applies to all cases of re-employment or contractual appointments of pensioners in government service. The move is in line with the recommendations of the Pay and Pension Commission 2020.

As per the new directive, individuals who return to government service after retirement will be given the option to choose between receiving their previous pension or the salary of their new post. The order aims to streamline post-retirement benefits and reduce the financial burden on the national exchequer.

The ministry has formally notified all concerned departments of this amendment in the pay and pension scheme.

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