Since the announcement of Budget 2025-2026, the government employees in both centre and the provinces have been immersed in protest for their rightful demands such as Disparity Reduction Allowance (DRA), raise in Salaries given the prevailing inflation and old age benefits such as pension. Millions of employees belonging to various Departments under banner of the Sindh Employees Alliance (SEA) have been protesting in provincial headquarter Karachi and at Division level .
The heat, anger and frustration pervaded Sindh’s air in August. The same scene was repeated from Hyderabad to Nawabshah, from Badin to tiny towns nestled in the rural centre of the province: government workers locking up their offices, getting up from their desks, and taking to the streets. Teachers, clerks, revenue employees, and others who support the province’s operations were now raising slogans together against what they described as the “economic murder” of their future.
Some held handwritten signs, while others carried banners with bold slogans. At the edge of a rally, one of them, Razia Bibi, a primary school teacher with almost 30 years of experience, stood silently. “I taught generations; now I’m left with uncertainty,” was the simple message on her sign. The words spoke for themselves, so she didn’t have to yell. She and thousands of others felt that the government’s new pension regulations were a betrayal rather than merely a change in policy.
The Sindh Finance Department’s announcement of the Sindh Civil Servants (Defined Contribution Pension) Rules 2025 on August 21 served as the impetus for this unrest. The official justification was straightforward: a new system was required to make the pension bill sustainable because it had become too large for the provincial budget. For those impacted, however, the situation was much more chaotic. The old, guaranteed pension system will be replaced by one that is based on market fluctuations under the new regulations, which will be applicable to anyone hired or regularized after 1 July 2024.
A civil servant could retire under the previous arrangement knowing exactly how much they would get each month for the rest of their life. They were able to plan, dream, and feel safe because of that promise. That certainty is no longer there. Workers will be required to deposit 10 percent of their pay into a personal account, with the government contributing the remaining 12 percent. Private pension fund managers will invest the funds, and the ultimate distribution will be solely based on the performance of those investments. The pension may be sufficient if the markets perform well. That’s the retiree’s problem if they don’t.
Furthermore, the changes don’t end there. Even for those who are currently employed, benefits are being subtly reduced by changes to the West Pakistan Civil Services Pension Rules, 1963, which were announced along with the new programme. Instead of using final pay, which is a smaller amount, pensions will be calculated using the average of the last 24 months’ salary. After ten years, some dependents’ family pensions will expire. A person’s pension could be reduced by up to 10 percent if they decide to retire early.
These measures are about numbers for the government. They are about survival for workers. More than just a technical adjustment, the transition from a defined benefit to a defined contribution system involves a risk transfer. That risk was borne by the government under the previous system. The person does in the new one. And that risk feels like a loaded dice in a nation where salaries have only increased by 12 percent, inflation has recently risen above 200 percent, and many workers already make less than their counterparts in other provinces.
The wound is only made worse by the elimination of additional benefits for new hires, like group insurance and the Disparity Reduction Allowance. It creates a two-class system in which those hired after July 2024 must live with uncertainty while those hired before that time retain their guaranteed pensions. This division is destructive in addition to being unfair. It causes animosity, lowers morale, and deters young talent from choosing public service as a career in Sindh.
Amid fear of less pension and cut in pensionary benefits, thousands of teachers and other employees have opted for voluntary retirement before their superannuation being unsure about the future to escape financial loss. Until the promise of public service in Sindh is restored with dignity, that is a cause worth fighting for. Hence, it is believed by various public sector employees that instead of provision of DRA, Sindh Government has committed the financial massacre of employees in the guise of pension reforms.
The contrast with how elected officials are treated is even more painful. Low-paid employees are told to make sacrifices for the sake of fiscal restraint, while lawmakers continue to enjoy lavish benefits and allowances. Discussing shared hardship is challenging when the burden is so unequally divided.
The reaction has been quick. In support of their colleagues who were protesting, the Sindh Professors and Lecturers Association in Hyderabad observed a black day by donning armbands. Clerks in Sanghar staged a sit-in outside the office of the district commissioner. Revenue employees in Moro and Daur locked their offices and participated in protests calling for the reinstatement of job quotas for the surviving family members of deceased workers, a privilege that the new framework had taken away. Female educators have been particularly outspoken in rural areas. For many women, the only way to become financially independent is to work for the government. That independence is jeopardized in the absence of a stable pension.
Public services have already been interrupted by the protests. Thousands of students’ lessons have been delayed as a result of school closures. In many offices, administrative work has slowed or ceased. It is difficult to overlook the irony: the government has incited unrest that is undermining the very services it purports to protect in the name of preserving the province’s finances.
There are alternative paths. Employees would have a stronger foundation for their retirement savings if the government increased its contribution to the new pension plan to at least 15 percent or 20 percent. It could link pensions to inflation to maintain their value over time and guarantee a minimum pension amount, preventing any retiree from falling into poverty. It could address corruption in procurement and budgeting, reduce unnecessary spending elsewhere, and enhance pension fund management. By taking these actions, financial issues would be resolved without fully burdening workers.
Above all, the government could speak with those whose lives these policies are changing. In a ledger, civil servants are more than just numbers. They are the health professionals who work in distant clinics, the teachers who open young minds, and the clerks who keep the government’s machinery running. Their efforts serve as the cornerstone for the province’s future. The services they offer are compromised when their security is compromised.
There is more to the August 2025 protests than just a response to one policy. They serve as a warning, an indication that public employees will not stand by and watch their rights being taken away. They also serve as a reminder of the annoyance that has been brewing for years due to low income, growing expenses, and a feeling of being ignored. Ignoring this puts the government at risk for both ongoing instability and a long-term drop in the calibre and stability of its workforce.
Reforming pensions is not always bad. Numerous nations have had to modify their systems to take into account shifting economic conditions and demographic trends. However, reform needs to be transparent, equitable, and aimed at preserving the honour of those who have dedicated their professional lives to serving the public good. It shouldn’t serve as an excuse to cut costs at the expense of the most vulnerable. That test is not met by the Sindh Defined Contribution Pension Rules 2025 as they currently stand. They remove guarantees without providing sufficient safeguards. Employees are separated into winners and losers. They make retirement a question mark instead of a promise.
Now, the Sindh government must make a decision. It may continue, resulting in short-term cost savings but long-term instability and mistrust. Alternatively, it can pay attention to the voices on the streets, accept the justifiable concerns of its workers, and seek a solution that strikes a balance between social justice and financial responsibility. Although it will be more difficult, the second route is the only one that pays tribute to the sacrifices and service of those who keep this province running.
Pensions are ultimately about more than just money. They are about acknowledgment— a means by which society can tell its public servants, “Your work was important, and we won’t leave you in your old age.” A generation-old bond of trust would be broken if that were taken away. Fairness, respect, and the freedom to retire fearlessly were the main concerns of the August 2025 protests, which went beyond financial figures. Until the promise of public service in Sindh is restored with dignity, that is a cause worth fighting for.
Amid fear of less pension and cut in pensionary benefits, thousands of teachers and other employees have opted for voluntary retirement before their superannuation being unsure about the future to escape financial loss. Until the promise of public service in Sindh is restored with dignity, that is a cause worth fighting for. Hence, it is believed by various public sector employees that instead of provision of DRA, Sindh Government has committed the financial massacre of employees in the guise of pension reforms.
