ISLAMABAD – The government has approved a Rs19.54 billion compensation package for all Utility Stores Corporation employees laid off from September 1, 2025. The package covers permanent, contract, and daily wage employees, totaling 11,406 workers. Officials said the move aims to provide financial support and ensure smooth transition for affected employees following the restructuring of the corporation.
Permanent employees with two years or less service will receive full salary for remaining months, while those with more than twenty years of service will get two continuous basic salaries for complete years. Employees with exactly twenty years will receive three continuous basic salaries or 1.25 times the basic salary for remaining months. A total of 5,229 permanent employees are set to receive Rs13.183 billion under this plan.
Contract employees will also benefit according to their years of service. Those with two years or less will receive full basic salary for remaining months, while employees with 16 years of service will be paid 30 basic salaries. Contract employees with more than 16 years of service will get 35 basic salaries. In total, 3,323 contract employees will receive Rs3.62 billion from the government-approved package.
Daily wage earners are included as well. Employees with two years or less service will receive Rs37,000 for the remaining months. Those with ten years of service will receive 15 salaries of Rs37,000, while employees with ten to fifteen years will get 28 salaries. Daily wage earners with over 15 years of service will receive 30 salaries of Rs37,000.
Authorities said 2,854 daily wage employees will receive a total of more than Rs2.71 billion. The package also covers contract and daily wage employees laid off earlier under the corporation’s restructuring plan. Officials emphasized that the compensation ensures fair treatment for all affected workers.
The government expressed hope that the financial support will help employees manage their expenses and maintain stability during this transition. Authorities also highlighted that this step reflects the state’s commitment to protecting workers’ rights and providing relief amid organizational reforms.