Golden Handshake Scheme update: Who can apply?

The National Assembly’s Standing Committee has approved the Civil Servants Amendment Bill 2024, introducing a golden handshake scheme for surplus government employees.

A golden handshake is a financial package offered to employees who agree to retire early or leave their job voluntarily. It usually includes a large cash payment, possible pension benefits, and other incentives like health coverage. This approach helps reduce extra staff without resorting to forced layoffs.

Why This Bill Was Introduced?

The new bill aims to tackle overstaffing in government departments, especially in those institutions that became inactive or redundant after the 18th Constitutional Amendment.

Now, surplus employees in such departments will have the option to retire voluntarily with financial benefits instead of being kept on payroll without clear responsibilities.

What Will Change?

This step is expected to:

• Reduce administrative costs for the government

• Improve the efficiency of departments

• Allow the closure of non-functional offices left idle after powers were shifted to provinces

Other Bills Approved

The committee also approved:

• National School of Public Policy Amendment Bill 2025 – replacing “Federal Government” with “Competent Authority” in official terms

• Ease of Doing Business Bill 2025 – aimed at making regulations simpler for businesses

What’s Next?

The golden handshake provision is being called a major step in reforming Pakistan’s public sector. The bill will now move to the full National Assembly for further debate and final approval.

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