Utility Stores issues official circular for termination of all employees from September 1

Utility Stores issues official circular for termination of all employees from September 1

ISLAMABAD, SEPT 10: The administration of the Utility Stores Corporation (USC) has issued a formal circular announcing the termination of all employees, effective from 1 September 2025. Under the decision, 11,406 employees of the corporation will receive a government-approved financial package.

According to the official statement, permanent employees with two years of service or less will receive salaries for the remaining months in full. Those with more than 20 years of service will be paid two current basic salaries for each completed year. Permanent employees with service up to 20 years will receive three current basic salaries for each completed year, or 1.25 of the current basic salary for the remaining months.

A total sum of Rs19.504 billion will be provided to permanent, contract and daily wage employees. A total of Rs13.183 billion will be given to 5,229 permanent employees.

For contract employees, those with two years of service or less will be given the current basic salary for the remaining months. Employees with up to 16 years of service will receive 30 basic salaries, while those with more than 16 years will be paid 35 basic salaries.

A package amounting to Rs3.602 billion will be given to 3,323 contract employees.

Daily wage employees with two years of service or less will receive salaries at the rate of Rs37,000 per month for the remaining period. Those with up to 10 years of service will be given 15 salaries, each calculated at Rs37,000. For service between 10 and 15 years, 28 salaries will be provided. Employees with more than 15 years of service will receive 30 salaries.

A total amount of Rs2.719 billion will be paid to 2,854 daily wage employees.

Under the reorganisation plan, previously terminated contract and daily wage employees will also be eligible for this package.