The Pakistan Medical and Dental Council (PMDC) has recently introduced a voluntary scheme, called ‘golden handshake’ (GHS), which has been offered to around 100 permanent employees.
This move is in accordance with the PMDC Act 2022 and is aimed at reducing the government’s pension-related expenses.
According to a senior officer of the council, in view of the PMDC Act, the government has adopted a policy to decrease pension expenses by offering employees under the age of 55 a severance package in exchange for their early retirement.
The competent authority, exercising its powers under Section 9 of the PMDC Act 2022, has announced the GHS for regular employees who are under 55 years old and have at least ten years of service as of June 30, 2023.
Employees who accept the GHS will receive a double commutation of their pension as part of their final settlement. However, they will not receive monthly pensions. Additionally, they will be entitled to leave encashment of 12 months, and a payment equivalent to a one-year salary will be given as the PMDC welfare grant.
The general provident fund will be self-subscribed along with the PMDC contribution and interest after adjusting the outstanding advance amount.
A senior PMDC officer, speaking on the condition of anonymity, said that it was a requirement of the PMDC Act to offer the GHS to employees. “In the past, the Pakistan Medical Commission declared a mandatory GHS for employees and provided a nominal amount of Rs2.6 million to those in a special pay scale,” he said.
“However, the current GHS is voluntary, and employees, on average, may receive Rs10 million. Nonetheless, as the age limit has been lowered to 55 years, most employees may not accept it,” he added.
It is worth noting that in January of this year, the PMC ceased to exist after President Dr. Arif Alvi approved the PMDC Bill 2022, which has become an Act of Parliament. The PMDC Bill was passed in a joint sitting of parliament in December of last year and then forwarded to President Alvi for his approval.
Source: Pro Pakistani