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New contributory pension scheme unveiled with 10:12 employee-govt share | The Express Tribune
ISLAMABAD:
The federal government has implemented a new Contributory Pension Fund Scheme as the employees will now contribute 10 per cent of their salaries toward their pensions, making them eligible to receive a 12 per cent contribution from the national exchequer.
The Federal Government Defined Contribution (FGDC) Pension Fund Scheme Rules 2024 have been issued by the Finance Ministry’s Regulation Department under the Public Finance Management Act, 2019. The new scheme will be regulated in accordance with the Voluntary Pension System Rules, 2005, and the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
The rules replace the earlier directive issued in August 2024, which had set the government’s contribution at 20 per cent.
On August 20, 2024, the Finance Ministry had initially announced the introduction of a contributory pension scheme for newly recruited civil servants and armed forces personnel. Under the revised system, civil employees recruited on or after July 1, 2024, including those in civil defense, will be covered, while implementation for armed forces personnel is expected from July 1, 2025, pending formal approval.
To support the new pension structure, the government has allocated Rs10 billion for the 2024–25 budget and Rs4.3 billion for 2025–26.
Sources revealed that the scheme was introduced on the recommendation of the International Monetary Fund (IMF) and the World Bank to address the rising pension liabilities, which the government has termed a serious fiscal risk. The reform will not affect current employees but aims to slow the growth of future pension expenditures.
According to government estimates, federal pension spending is projected to reach Rs1.05 trillion in 2024–25, up 29 per cent from Rs821 billion in 2023–24. Pension liabilities for the armed forces are expected to rise 32 per cent, reaching Rs742 billion in 2025–26 compared to Rs563 billion in 2023–24.
For civil servants, pension allocations have increased by 6.6 per cent to Rs243 billion in the current fiscal year from Rs228 billion last year, reflecting modest savings due to the reforms.
Under the new rules, only authorized pension fund managers will manage the fund. The government, as an employer, will deposit 12 per cent of an employee’s pensionable salary through the Accountant General’s Office, which will also monitor record-keeping and fund transfers.
Employees’ 10 per cent contributions will be automatically deducted from their salaries, and both employee and employer contributions will be transferred to the Employer Pension Fund before salary disbursement.
Employees will not be allowed to withdraw pension funds before retirement. Upon retirement, they may withdraw up to 25 per cent of their accumulated savings, while the remaining amount will stay invested under the Voluntary Pension System Rules, 2002, until they complete 20 years of investment or reach the age of 80, whichever comes first.
Employee payslips will now include detailed pension contribution information, listing both the employee’s and employer’s shares along with the total accumulated balance. The Finance Ministry will allocate an annual budget for the government’s share and sign contracts only with pension fund managers that support electronic fund transfers. The agreements will also require insurance coverage in cases of death or disability, to be provided through the designated fund managers.
To supervise the scheme’s implementation, the Finance Ministry will establish a Non-Banking Finance Company (NBFC), which will initially operate in an interim capacity until formally constituted. Pension benefits in cases of retirement, resignation, dismissal, or early retirement will be determined according to government regulations.
The Contributory Pension Fund Scheme marks a major shift from the traditional defined-benefit model to a defined-contribution system, aiming to enhance financial sustainability and ensure long-term retirement security for future public sector employees.
New Delhi: Equity mutual fund (MF) inflows stood at Rs 28,054 crore in the month of December as systematic investment plans (SIPs) scaled a fresh record high last month, according to the Association of Mutual Funds in India (AMFI) data released on Friday.
The monthly mutual fund SIP inflows reached a new record high in December at Rs 31,002 crore, compared to Rs 29,445 crore in November. The SIP investments rose by 5 per cent and 17 per cent on a monthly and yearly basis, respectively.
Gold ETFs also registered strong inflows of Rs 11,647 crore in December, higher than Rs 3,742 crore in November, showed the AMFI data.
Flexi-cap funds witnessed a sharp pickup in inflows, reflecting investor preference for strategies that offer allocation flexibility across market capitalisations amid evolving market conditions.
The mutual fund industry reported an overall net outflows of Rs 66,571 crore in December. Hybrid schemes attracted inflows of Rs 10,756 crore, while ‘other schemes’, including ETFs, saw net inflows of Rs 26,723 crore.
Overall, the flow trend suggests that equity participation remains structurally intact, but investors are becoming more discerning, with greater emphasis on portfolio balance, diversification, and risk management rather than broad-based risk-taking, said Himanshu Srivastava, Principal Manager Research, Morningstar Investment Research India.
Flows remained resilient despite intermittent market volatility, supported by steady SIP contributions and continued confidence in India’s long-term growth outlook, he added.
Amid rising participation from Gen Z, women and households from smaller cities and towns, India’s mutual fund industry, especially the SIPs, are set to witness robust growth in 2026.
Investors have poured over Rs 3 lakh crore into mutual fund schemes through systematic investment plans until November, for the first time in a calendar year. The data from AMFI showed earlier that SIP inflows in the calendar year touched Rs 3.04 trillion (lakh crore) for the first time, up from Rs 2.69 trillion in 2024.
SIPs have emerged as one of the strongest and most reliable engines of growth for the Indian mutual fund industry. Sustained net inflows, strong market performance, and deepening retail participation, aided by digitisation and financialisation of savings, have contributed to the steady surge in AUM, according to ICRA Analytics. India’s mutual fund industry’s assets under management (AUM) may surpass Rs 300 trillion by 2035, it added.
Business
Bought 3BHK Flat Without Any Fancy Job Or Inheritance; CA Explains Real-Life Story Of Surat Man
New Delhi: Chartered accountant Nitin Kaushik recently posted on X the real-life story of a person who purchased a 3BHK apartment in Surat for Rs 55 lakhs without an inheritance or fancy career but with consistent discipline.
Kaushik said that he had recently met a person who despite not belonging to any privileged background, recently bought a 3BHK apartment in Surat for Rs 55 lakhs. Kaushik said this man’s simple story will “change your view on wealth”.
How a Simple Story Change your View on “Wealth”
A few weeks ago, I met someone-not from a privileged background-who recently bought a 3BHK apartment in Surat worth _55 lakhs.
No inheritance, no fancy job, no startup exit-just steady discipline.___#stockmarket_ pic.twitter.com/WBBgtGGyx3
— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) January 7, 2026
When Kaushik asked the person how he managed the purchase of the home the person said that he had saved Rs 45 lakhs over 12 years and took a home loan of Rs 10 lakh. “No panic about EMIs or inflation. Just quiet confidence and planning,” Kaushik said.
Kaushik said, “This was not overnight success.” The man saved consistently through recurring deposits, gold savings schemes and local real estate investments in his village near Surat. Kaushik said that consistency added with patience over 12 years is the key to the man’s success.
The person already owned a two-storey home and a small commercial shop in the village, which were both rented out. The rental inflows were roughly Rs 22,000 per month. “Every rupee saved or reinvested, building more wealth quietly,” wrote Kaushik.
According to Kaushik, the person accumulated over Rs 40 lakh through consistent saving and reinvestment, without using stocks or mutual funds. The man’s accumulation of wealth showed that “wealth is not about quick compounding but long term discipline. Many chase complex, risky strategies, but steady, patient investing builds real wealth brick by brick,” he said.
According to Kaushik, wealth develops based on how long you stick to your discipline and not how much you make. “Wealth grows by how long you hold your discipline, not just by how much you earn. Even small streams, flowing steadily, become rivers. Formula for success is Consistency × Patience × Simplicity. Anyone can start this today no matter your income level,” Kaushik said.
Last Updated:
Telecom operator Vodafone Idea on Friday laid out a detailed repayment roadmap for its adjusted gross revenue (AGR) liabilities; Know details
Vodafone Idea Share Price
Telecom operator Vodafone Idea on Friday laid out a detailed repayment roadmap for its adjusted gross revenue (AGR) liabilities, under which it will service a portion of the dues at a maximum of Rs 124 crore per year over a six-year period.
The company’s shares rose about 6% in early trade after the announcement.
In December, Reuters had reported that the Indian government approved a partial moratorium on Vodafone Idea’s dues, freezing payments of about $9.76 billion and pushing a large part of the repayment burden into the 2030s.
In its stock exchange filing, Vodafone Idea said its AGR liabilities — including principal, interest, penalty and interest on penalty for FY2006-07 to FY2018-19 — outstanding as of December 31, 2025, will be frozen and repaid in a phased manner.
As per the Department of Telecommunications (DoT) communication, the company will pay up to Rs 124 crore annually for six years from March 2026 to March 2031. This will be followed by payments of Rs 100 crore per year for four years from March 2032 to March 2035.
The balance AGR dues will then be cleared in equal annual instalments over six years from March 2036 to March 2041.
Vodafone Idea also said the DoT will constitute a committee to reassess the AGR dues, and the committee’s decision will be final. After the reassessment, the revised AGR amount will be repaid in equal annual instalments between March 2036 and March 2041.
The development is expected to remain in focus for investors, given Vodafone Idea’s stretched balance sheet and the critical role AGR relief plays in its long-term financial stability.
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January 09, 2026, 09:50 IST
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