Utility Stores Corporation Employees to Receive Rs. 25.5 Billion Exit Package After Termination
ISLAMABAD: The administration of the Utility Stores Corporation (USC) has issued a formal circular announcing the termination of all employees, effective September 1, 2025.
According to official documents, the Ministry of Industries has finalized a Rs. 25.5 billion financial package for employees affected by the restructuring of the corporation. The package includes compensation for regular, contract, and daily wage staff, along with allocations for widows and institutional closure costs.
Details of the Compensation Package
The official statement outlines different payment categories based on years of service:
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Employees with up to 2 years of service → Full salaries for the remaining months.
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Employees with over 20 years of service → Two current basic salaries for each completed year.
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Employees with up to 20 years of service → Either three basic salaries for each completed year or 1.25 times the current basic salary for the remaining months.
Allocation for Regular Employees
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Two years or less to retirement → Rs. 357 million reserved (approx. Rs. 1.52 million per employee).
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Over 20 years of service → Rs. 2.21 billion allocated (approx. Rs. 3.44 million per employee).
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Less than 20 years of service → Rs. 10.61 billion set aside (approx. Rs. 2.43 million per employee).
Allocation for Contract Employees
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Two years of service remaining → Rs. 17 million reserved (approx. Rs. 414,000 per employee).
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Over 16 years of service → Rs. 2.97 billion allocated (approx. Rs. 1.127 million per employee).
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Up to 16 years of service → Rs. 611.5 million set aside (approx. Rs. 947,000 per employee).
Breakdown of Workforce and Allocations
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Regular employees (5,229 workers): Rs. 13.18 billion allocated.
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Contract employees (3,323 workers): Rs. 3.6 billion allocated.
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Daily wage workers (2,854 workers): Rs. 2.71 billion allocated.
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Additional allocations: Rs. 5.75 billion for organizational wind-up expenses and support for widows.
Government’s Restructuring Plan
The move is part of the government’s broader restructuring and closure plan for USC, which has been under financial strain. Officials state that the compensation plan aims to provide fair financial relief to employees while managing the organizational transition.
