PIA pensioners

Pakistan International Airlines (PIA) retired employees have been facing a great deal of problems due to the issue of no increment in their pension. There was only a one-time increase in the pensions (in 2013) in the period between 2009 and 2017. Every year, there is an increase in the pensions of federal and provincial government employees, but this doesn’t happen in PIA. The airline’s management is bound to increase the pension of retired employees as per its 2003 circular which clearly mentions that “in future revision/suitable increase in pension shall be linked with salary revision of serving employees”. Another issue is that the national airline gives its employees 32 percent of their total salary as pension. But the formula (which was adopted in 2003) it applies in the end makes the pension calculated on their basic pays, which is not fair.

As per rules, all other government organisations give their retired employees 50 percent of their salaries as pensions. This was also in practice at PIA till the end of 2003. This is the reason why the retired employees have been demanding since long that the airline should either give them 50 percent pension on their basic pay or make the 32 percent pension to be given on their total salaries without implying the said formula. The PIA management should take steps to ensure that all pensions are increased in line with the salary increase with the ratio of serving employees and in future pension increase should be made as per increase in federal budget every year by the government.

Bashir Ahmad

Karachi