Utility Stores Corporation of Pakistan Severance and Compensatory Package 2025

The Utility Stores Corporation of Pakistan (Private) Limited has officially issued Circular Order No. HR&A-03/2025 dated 09 September 2025, announcing the severance and compensatory package for all USC employees laid off with effect from 01 September 2025. This notification provides a complete framework of financial benefits and compensations for regular employees, contractual employees, and daily wagers.

Key Highlights of the Severance Package

According to the circular, all categories of employees will be compensated based on their service years and remaining service period. The details are as follows:

For Regular Employees

• Employees having 2 years or less remaining service will get the gross pay of the remaining months.
• Employees with service of more than 20 years will receive 2 times the running basic pay of completed years.
• Employees with less than 20 years of service will be given 3 times the running basic pay of completed years OR 1.25 times the running basic pay for remaining months of service (maximum 50 months), whichever is higher.

For Contractual Employees

• Employees with 2 years or less remaining service will get the running basic pay for each remaining month.
• Employees with up to 16 years of service will receive 30 times the running basic pay.
• Employees with more than 16 years of service will receive 35 times the running basic pay.

For Daily Wagers

• Employees with 2 years or less remaining service will get Rs. 37,000 per month for the remaining months.
• Employees with up to 10 years of service will be compensated with 15 x Rs. 37,000.
• Employees with 10 to 15 years of service will receive 28 x Rs. 37,000.
• Employees with more than 15 years of service will be paid 30 x Rs. 37,000.

Additional Benefits

Apart from the severance package, USC has also confirmed that pending salaries, wages, and terminal dues will be cleared according to USC Service Rules. The notification also instructs all General Managers, Zonal Managers, and Regional Managers to facilitate the employees in completing the NOC process to ensure timely payments once funds are received from the Federal Government.

The severance and compensatory package announced by the Utility Stores Corporation of Pakistan in September 2025 is designed to support laid-off employees financially based on their years of service. This step aims to provide relief and smoothen the transition for employees affected by the restructuring process.