Title: Landmark Pension Reform: Proposed Overhaul Set to Boost Retirement Incomes by Up to 50%
In a significant move set to reshape the public sector compensation landscape, a new proposal from the Administrative and Recruitment Organization could mark one of the most substantial changes to the pension system in recent years.
A New Calculation for a Stronger Foundation
Currently, the pensions of retired government employees are calculated based solely on the base salary stated in their employment contracts. A significant portion of their total monthly income, which comes from various allowances and benefits such as welfare payments and overtime, has historically been excluded from pension calculations.
The proposed reform aims to integrate these additional benefits into the core formula used to determine retirement pensions. This fundamental shift means that the entire compensation package, not just the base salary, would form the foundation for an employee’s future pension.
Substantial Gains for Retirees
Experts indicate that if this plan is approved by the cabinet, it will lead to the inclusion of a “welfare benefits” component in retirees’ pay slips. This change is projected to create a noticeable increase in their pension base over the coming years.
Analyses estimate that this structural reform will, in the medium term, lead to a substantial 40 to 50 percent increase in pension payments for retirees. This enhanced financial support is anticipated to play a vital role in strengthening their purchasing power and contributing to an improved standard of living.