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Retirement Benefits Of PTCL’s Employees

Retirement Benefits Of PTCL’s Employees

Pakistan Telecommunication Company Limited (PTCL) operates various retirement / post-retirement benefit schemes. The plans are generally funded through payments determined by periodic actuarial calculations or up to the limits allowed in the Income Tax Ordinance, 2001. The Company has constituted both defined contribution and defined benefit plans.

PTCL Employees Retirement Plans (BPS, NCPG & NTC Groups)
PTCL Employees Retirement Plans (BPS, NCPG & NTC Groups)

(1)  PTCL Employees GPF Trust

PTCL operates an approved funded provident plan covering its permanent employees. For the purposes of this plan, a separate trust, the “PTCL Employees’ GPF Trust” (the Trust), has been established. Monthly contributions are deducted from the salaries of employees and are paid to the Trust by the Company. Interest is paid at the rate announced by the Federal Government, and this rate for the year was 14% (2011: 14%) per annum. The Company contributes to the fund, the differential, if any, of the interest paid / credited for the year and the income earned on the investments made by the Trust.

(2)  Defined benefit plans

PTCL operates the following defined benefit plans:

 (i)  Pension plans

PTCL operates an approved funded pension plan through a separate trust, the “Pakistan Telecommunication Employees’ Trust” (PTET), for its employees recruited prior to January 01, 1996 when the Company took over the business from PTC. The Company also operates an unfunded pension scheme for employees recruited on a regular basis, on or after January 01, 1996.

 (ii)  Gratuity plan

PTCL operates an unfunded and unapproved gratuity plan for its New Terms and Conditions (NTCs) employees and contractual employees.

 (iii)  Medical benefits plan

PTCL provides a post-retirement medical facility to pensioners and their families. Under this unfunded plan, all ex-employees, their spouses, their children up to the age of 21 years (except unmarried daughters who are not subject to the 21 years age limit) and their parents residing with them and any their dependents, are entitled to avail the benefits provided under the scheme. The facility remains valid during the lives of the pensioner and their spouse. Under this facility there are no annual limits to the cost of drugs, hospitalized treatment and consultation fees.

 (iv)  Accumulating compensated absences

PTCL provides a facility to its employees for accumulating their annual earned leaves. Under this plan, regular employees are entitled to four days of earned leaves per month. Unutilized leave balances can be accumulated without limit and can be used at any time, subject to the Company’s approval, up to:

(i) 120 days in a year without providing a medical certificate and

(ii) 180 days with a medical certificate, but not exceeding 365 days during the entire service of the employee. Up to 180 days of accumulated leave can be encashed on retirement, provided the employee has a minimum leave balance of 365 days. Leaves are encashed at the rate of the latest emoluments applicable to employees, for calculating their monthly pension.

New Compensation Pay Grade (NCPG) employees are entitled to 20 leaves after completion of one year of service. Leaves can be accumulated after completion of the second year of service, up-to a maximum of 28 days. Unavailed annual leaves can be encashed at the time of leaving the Company up-to a maximum of two years of un-availed leaves.

NTCs / contractual employees are entitled to three days of earned leaves per month. Unutilized leave balances can be accumulated without limit. Up to 180 days of accumulated leaves can be encashed at the end of the employees’ service, based on the latest drawn gross salary.

About Tahir Iqbal

PTCL Worker at Switching EWSD Multan Qualification = DAE (electrical) + BS(CS)


  1. It reality that PTCL k tamam employees ko dasa ja raha hi.

  2. Look at the benefits for employees and then recall the perks of mazhar hussain, it reminds us of ptcl previous mission statement “FEEL THE DIFFERENCE”

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