KARACHI: Supreme Court of Pakistan (SCP) has ordered payment of minimum pension of Rs,8000 for retired employees of banks.
The banks have also been ordered to add increment of 5 percent every year starting January 01.
According to Taurus Research report issued on Tuesday, said the apex court had released a detailed judgment disposing the suo moto taken by taken by the Chief Justice of Pakistan citing the exorbitant disparity in the wages of bank executives and the pensions paid to the former employees of ABL, HBL and UBL.
Effective immediately the above Banks must pay at least Rs8,000 per month to any pensioner (including their widows, where applicable), along with an annual increment of 5 percent in the aforesaid pension, effective on January 01 every year.
The revised pension will be paid to pensioners linked to the basic pay ‘frozen’ category in past years for all the three banks. However, in case of UBL the judgment will also apply to retrenched employees including those who had served the bank for more than ten years on the date of retrenchment.
Employees who are currently receiving pensions in excess of Rs8,000/= shall continue to do so, and those whose pension falls below the minimum pension (after 5 percent raise on January 01) shall be paid the minimum pension with 5 percent increase.
The payments will be prospective from the date of the judgment i.e. February 13, 2018. Pensioners who have taken the benefit of Voluntary Separation Scheme or Golden Handshake Scheme will not benefit from the above judgment.
