According to a statement sent by the Finance Ministry, the government has formally launched a Contributory Pension Fund Scheme for newly hired government employees.
With the goal of controlling the increasing financial strain that pensions are placing on the federal budget, this new plan, which will go into effect on July 1, 2024, represents a substantial change in the pension system for government personnel.
As of July 1, 2024, all newly hired civil servants will be covered under the Contributory Pension Fund Scheme. The plan will take effect on July 1, 2025, one year later, for civilian personnel whose salaries are funded by the defense budget.
As part of the new plan, newly hired staff members would contribute 10% of their base pay to the pension fund.
