DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
ISLAMIC REPUBLIC OF AFGHANISTAN
MINISTRY OF LABOR, SOCIAL AFFAIRS, MARTYRS AND DISABLED (MoLSAMD)
GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE
CIVIL SERVICE EMPLOYEES OF AFGHANISTAN
(March 2011)
Prepared by MoLSAMD and in cooperation with IARCSC
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
I am pleased to inform you that the Ministry of Labor, Social Affairs, Martyrs and the Disabled
(MOLSAMD) in close cooperation with the Independent Administrative Reform and Civil Service
Commission and the team from the Afghanistan Pension Administration and Safety Net Project, has
prepared the Guidebook for the Human Resources Officers in State bodies on how to implement the
Pension regulation for the Civil Service Employees of Afghanistan
An inter-ministerial Steering Committee to draft a pension reform strategy and the Pension
comprised of senior members from MoLSAMD, MOF and IARCSC, supported by a Technical Working
force on September 17 2009.
Having new pension scheme and new Pension Regulation in place brought the need for creating new
set of administrative procedures and this Guidebook is one of them. Administrative procedures are
the basic rules for implementing regulation and for administering, coordinating, and articulating
programs affecting more than one department or division.
Our Guidebook contains specific detailed rules to put regulation into practice, generally telling how,
by whom, where, and when things are to be done.
This Guidebook is prepared to acquaint Human Resources (HR) Officers from State Institutions and
other Government agencies with the Pension Regulation for The Civil Service Employees.
Our intention was to provide the HR Officers with basic information regarding the Regulation for
Civil Service Retirement. It describes and explains eligibility for pension, different types of pension,
pension contribution, how to determine the actual length of service, payment of pension and the
complete application process in a step by step format. One of the most important chapters of this
Guidebook is the definition of the responsibilities of Human Resources Officers in the procedure to
process pension applications.
The contents of this Guidebook will apply to the employees covered by the Regulation.
This Guidebook has been written for information and instruction only; it does not replace the
Regulations which will prevail if there is any conflict between the two documents.
Also, this Guidebook will be updated time to time as needed by the Ministry of Labor, Social Affairs,
Martyrs and the Disabled (MOLSAMD).
We do hope that this Guidebook will help you in your future work.
Yours sincerely,
H.E. Amena Afzali, Minister
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
Table of Contents
1.
INTRODUCTION .................................................................................................................. 4
2.
GLOSSARY OF TERMS .........................................................................................................5
3.
PREFACE.............................................................................................................................. 7
4.
RESPONSIBILITIES OF HR OFFICERS DEALING WITH PENSION ISSUES .......................... 8
6.
DETERMINING ACTUAL LENGTH OF SERVICE................................................................. 15
7.
COVERAGE OF PENSION BENEFITS .................................................................................. 16
8.
PENSION CONTRIBUTIONS............................................................................................... 16
10.
PAYMENT OF PENSIONS ................................................................................................... 20
11.
PENSION APPLICATION PROCEDURE .............................................................................. 20
12.
APPEAL.............................................................................................................................. 26
13.
QUESTIONS AND ADDITIONAL HELP............................................................................... 26
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
1. INTRODUCTION
This Guidebook is prepared to acquaint Human Resources (HR) Officers from State Institutions and
other Government agencies with the Pension Regulation for The Civil Service Employees published in
the Official Gazette No: 992 on 17 August 2009. The Guidebook is intended to provide the HR
Officers with basic information regarding the new Regulation for Civil Service Retirement. It
describes and explains the complete application process in a step by step format. It also includes
definition of the responsibilities of Human Resources Officers in the procedure to process pension
applications. The contents will apply to the employees covered by the new Regulation.
This Guidebook has been written for information and instruction only; it does not replace the
Regulations which will prevail if there is any conflict between the two documents.
This Guidebook will be updated time to time as needed by the Ministry of Labor, Social Affairs,
Martyrs and the Disabled (MOLSAMD).
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
2. GLOSSARY OF TERMS
This glossary is intended to define and elaborate the terms used throughout this Guidebook.
Civil service employee:
person employed by the civil service of Afghanistan including
permanent and contractual employees.
Retirement:
means end of the employment service period of a civil service
employee in the organization in line with provisions of the
Regulation.
Pensioner:
is a civil servant whose period of service is completed in the related
organization and she/he is recognized eligible for pension benefit to
be paid to her/him.
Pension contributions:
means withholding a certain percentage of an employee’s monthly
salary and the contribution of organization to be transferred to
Treasury Department of MOF
Pension benefit:
means payment of cash funds to pensioner or his/her survivors in
accordance with provisions of this regulation
Survivors:
means: wife, husband, unmarried daughter(s), son(s) under age (18)
or coupled with education or disabled or have constant illness
preventing them to work or bound to complete the military service.
Father, mother, unmarried sister(s), brother(s) under age (18) or
coupled with education or bound to complete the military service,
subject to that the employee had been responsible for his/her
support/ custodianship and the foetus of the deceased female
employee, born alive.
Disability:
Total and partial and permanent disability by reason of medically
determinable physical or mental impairment that prevent a person
from rendering useful and efficient service.
Final wage:
means average of monthly wage and allowances (khader and
professional) over the final three years actual service, taking in
account annual increases in wages. The final wage is based on the
grade and rate set after the completion of the IARCSC Pay & Grading
Reform. If individual worked for the period less than full three years
on P&G reform rates, the actual number of years and months will be
taken into account for calculation of the average.
Actual Length of service:
means the total period of employment that the civil servant in
accordance to the provisions of law executed in the organization on
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
actual – base when pension contribution has been withheld from
his/ her monthly salary
Voluntary retirement:
is a retirement that a civil servant employee, after completion of
twenty five (25) years actual length of service and civil servants over
fifty-five (55) years of age are eligible to claim /request for voluntary
retirement.
MOLSAMD:
Ministry of Labour, Social Affairs, Martyrs and Disabled of Islamic
Republic of Afghanistan
Organization:
State Institutions & other Government agencies - Any agency,
branch, department, institution, university, institution of higher
education, or board of the state
IARCSC:
Independent Administrative Reform and Civil Service Commission of
Islamic Republic of Afghanistan
MOF:
Ministry of Finance of Islamic Republic of Afghanistan
New Regulation:
the new Pension Regulation for The Civil Service Employee
published in the Official Gazette No: 992 on 17 August 2009
SOEs:
State owned enterprises
The Government:
The Government of the Islamic Republic of Afghanistan
Contribution amount:
The amount contributed by a civil servants or the amount
contributed by the Government to the pension scheme.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
3. PREFACE
Civil service pension reform
Afghanistan’s pension system is applicable to civil servants, teachers, employees of state-owned
enterprises (SOEs) and civil servants of the Afghanistan National Army (ANA), Ministry of Interior
(MOI) and National Directorate of Security (NDS). All sectors of the civil service are undergoing rapid
and comprehensive transformation which affects the compensation and remuneration of public
sector employees.
An inter-ministerial Steering Committee to draft a pension reform strategy and the Pension
comprised of senior members from MoLSAMD, MOF and IARCSC, supported by a Technical Working
Group. The Regulation was promulgated in the Official Gazette on August 17 2009 and came into
force on September 17 2009.
Security Sector pension reform
A separate Regulation and Administrative Procedures will cover Service HR in the security sector.
Reform notes
Employees who have not been re-classified according to the new Pay & Grading scales under the
reforms implemented by IARCSC will continue to be governed by the old pension rules as published
420 Hijrey.
MoLSAMD will continue to administer the new pension scheme. MoLSAMD and IARCSC will ensure
uniform application across all agencies.
The reform of the pension scheme will ensure that the process becomes more user-friendly and
efficient.
The administration of the pension scheme will be computerized to facilitate faster processing of
pension cases as well the execution of payments.
Civil servant/Employer Contributions - Both the employer (the Government) and the civil servant will
contribute an equal 8% of basic salary of the individual civil servant plus allowances for those civil
servants who have been re-classified under the pay grading reforms.
Civil servants will have deductions made to their salaries to pay for the pension. These deductions
will be made before salaries are paid to civil servants.
Old pension scheme employees who have not yet re-classified under the Pay & Grading reforms will
continue to make contributions at the rate of three percent (3%) until they are re-classified.
The total actual length of service, prior to and after, the implementation of the re-classification
under the Pay & Grading Reform will be taken into account.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
4. RESPONSIBILITIES OF HR OFFICERS DEALING WITH PENSION ISSUES
Government Human Resources Officers are responsible for the following:









1
Determining who is eligible for a pension and the category of pension.
Preparing and keeping the individual HR records of civil servants in their organization.
Pension files and records must be maintained in a secure and accessible locaon for 4 0 years
from the commencement of the file. Attention should be paid to the process of record
maintenance, storage and retrieval. Pensioners’ circumstances change and files must be
maintained. Longer term pension records will be used to help with pension systems
planning. Ae r the per i od of 4 0 years those records should be transferred to the General
Archive of each respective organization.
Informing civil servants of their retirement rights and responsibilities under the Pension
Regulation for the Civil Service Employees of Afghanistan.
Using the new forms and following the approved procedures and Guidelines within their HR
Department or Directorate.
Completing individual retirement records and ensuring that records are accurate. This
includes application forms and work history forms.
Sending completed retirement application documents to the Pension Department of
MoLSAMD.
Preparing and completing civil servants employee and/or their survivor’s retirement
application.
Answering questions from civil servants and/or their survivors regarding their retirement
rights, benefits and the application process.1
To document and maintain an accurate record of all Civil Service Employee Survivors where
a Civil Service Employee has responsible for the Survivors support or custodianship.
There are two types of Survivors
The Survivors of the deceased Civil Service Employee prior to his/her retirement
The Survivors of the deceased Civil Service Employee/Pensioner after his/her retirement
The HR Officers are responsible only for the first type of the Survivors (prior to retirement).
The second type of the Survivors is the responsibility of the Pension Department
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
5. TYPES OF RETIREMENT
There are five categories of retirement to determine eligibility for pension benefits under the new
Pension Regulation for the Civil Service Employee.
Category 1:
Attaining normal retirement age – sixty-five (65)
A civil servant is eligible for normal age type of retirement upon meeting the required retirement
age of sixty-five (65).
*
A civil service employee attaining sixty-five (65) years of age and his/her contract is
extended based on need of the relevant organization and his/her agreement, in this case his/her
pension benefit shall be increased by 3% for each extra year of service over age sixty-five (65), but
not exceeding maximum of eighty (80) % of the Final wage.
Category 2:
End of Service period (Forty years actual length of service)
A civil servant is eligible for this type of retirement upon meeting the requirement of forty (40) years
of actual length of service, regardless of age.
Category 3:
Voluntary retirement
Voluntary retirement is the termination of service before the normal retirement age by the civil
servants own will, i.e. termination of the service took place upon the employee’s request. A civil
servant is eligible for voluntary retirement after attaining fifty-five (55) years of age and fulfilling
actual length of service of twenty-five (25) years.
 Early retirement:
There are four special cases of early retirement:
a.
Age 55 and minimum of 25 Years of Service (YOS) met
It is possible to retire early with regular pension, provided a civil service employee has
completed 25 years of service. However there may be penalties which apply and the employee
cannot access a full pension (see below on the Penalty for Early Retirement).
b. Age 55 but less than 25 years of service:
A civil service employee who is 55 but who has not completed 25 years of service is ineligible
for an early pension. S/he must wait until they have either completed 25 years or service or
reaches 65 years of age.
c. Age is less than 55 and has 25 years of service.
A civil service employee who has 25 years of service, but who is less than 55 years of age is
ineligible for early rer eme nt . S/he m
u s t wa i t unl they r each 55 bef ore t hey are eli gible f or
early retirement. Or if they choose to separate they may apply for pension at age of 65.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
d. Age is less than 55 and has less than 25 years of service.
In this case, the employee has to wait until age 65 to apply for benefit or connue wo r ki ng
until both the above conditions get satisfied.
 Deferred Pensions
Individuals may choose to defer the receipt of pension benefits following permanent or temporary
separation from the civil service and start receiving pension benefits at a later date.
In cases (b), (c), and (d) as described above, deferral will be a mandatory requirement if conditions of
retirement are not met.
In such cases the civil service employee must apply for pension benefits to the HR Officer of the
relevant organization. The HR Officer will be required to submit the application for pension benefits
on behalf of such an employee to the Pension Department following the standard process at the
point of separation from the civil service. The employee should indicate the preferred period of
deferral on the application if the duration of this period is known.
The HR Officer should ensure:



One copy of the pension application file is retained by the HR Officer
One copy of the pension application file must be retained by the civil service employee, and
One copy of the pension application file must be sent to the pension Department
When the individual chooses to start to receive pension benefits the pension, s/he will then apply
directly to the Pension Department. It will be responsibility of the Pension Department to store all
the pension application files of these individuals until a pension benefit is awarded. Following the
award of a pension benefit standard Pension Department procedures apply.
If a former civil service employee who had separated from service rejoins the civil service, the HR
officer of the state organization where employee now works will follow standard pension benefit
application procedures.
Civil service employees who have deferred and then rejoin the civil service will retain the right to the
total actual length of service calculated by combining all periods of civil service employment.
The Pension Department will be required to review all applications on record for a civil service
employee and calculate the pension benefit based on the combined total of actual length of service.
Individuals not starting to collect pension benefits on time
In some situations a pensioner may not start collecting pension benefits immediately upon
notification of award.
In such cases the Pension Department must retain the pension application file and activate the
normal payment procedure for the benefit when the pensioner attends the Pension Department to
start collecting.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
 Penalty for Early Retirement
The following provisions will start to apply five years after the promulgation of the Pension
to all cases of voluntary retirement where individual has not
reached the age of 63.
In the case of Civil Servants who are not 63 years of age and have applied for retirement
certain restrictions will be imposed. His/her annual retirement rights will be permanently
reduced by 3% for each year of length of service before age of 63. This is to discourage early
retirement and promote extended career.
Early retirement example – Rashidullah
Rashidullah rer es at 58 year s of age so hi s final benefit wi ll be reduced by five year s
be reduced by 3% for each year. 3% me s 5 year s eq uals 15%. Rashidullah’s pension will be
reduced by 15%.
This calculation of pension is based on the final wage. When pension is calculated, following
standard formula, it is then reduced by 15%. So, if the pension of Rashidullah was calculated
as Afs 45,000; his actual reduced pension will be Afs 38,250 for life.
Responsibility to calculation reduction in pension will be with the Pension Department and
applied at the point of actual claim of the first pension at the Pension Department,
considering age of that individual at that particular time.
This provision on reducon shal l not appl y to emp l oyees wh o have comp l et ed 40 year s of
actual service or disabled.
 Incentive for deferral of retirement
The following provisions will start to apply five years after the promulgation of the Pension
to all cases of voluntary retirement where individual decided
to defer pension unl aer age of 65.
Where employee’s contract is extended based on need of the relevant organization and
his/her agreement, in this case his/ her pension benefits shall be increased by 3% for each
extra year of service over age of 65, but not exceeding maximum of 80% of the Final Wage.
Category 4:
work
Death, missing, disability, or continuous illness that disrupts the civil servant to
In event of the death of a civil servant, or who goes missing or suffers disability or continuous illness
that disrupts the civil servant to work, the following definitions or clarifications are applicable for
determining retirement in this category.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
A. Death
The Regulation provides survivor pension benefits under certain circumstances for eligible
beneficiaries upon the death of a civil servant or retiree.
There are three types of death conditions and pension benefit will vary: (i) normal death (or death
not associated with job) of the civil servant, (ii) death due to work conditions or accident at work of
the civil servant, (iii) any death of the pensioner.
 Normal Death of the Civil Servant

Upon the death of an employee prior to retirement and or leaving the job, his/her survivors
shall be paid as follows:
1In cases where his/ her length of service is 1 to 10 years, his/ her survivors shall be
paid an amount equal to 12 me s of the Fi nal W
a ge and al lowa nces , as i ns tal lm
e nt s or a
lump sum payment as pension benefit.
2In cases where his/ her length of service is more than 10 and up-to 25 years, his/
her survivors shall be paid an amount equal to 36 me s of the Fi nal Wage and allowances, as
installments or a lump sum payment as a pension benefit.
3In cases where his/ her length of service is more than 25 years, his/ her survivors
shall be paid an amount equal to 60 me s of the Fi nal W
a ge and al lowa nces , as installments
or a lump sum payment as a pension benefit.
 Death Due to work conditions of the Civil Servant

Upon the death of an employee during the execution of their work, prior to retirement
his/her survivors shall be paid and amount equal to 60 me s the Final Wage. The benefit is
paid either as a series of installments or as a lump sum payment. This type of pension
payment does not take into account his/her length of service when making the calculation.
Death due to accident at work example: Sharifullah
Sharifullh was killed in an accident that happened at the site of a construction of a new
school that he was inspecting. His annual salary, including allowances at the time was 28,000
Afs. The final calculaon for hi s deat h rel at ed pens i on is 48, 000 me s 60. The final amo unt
received by his survivors is 1,680,000 Afs and it is only one claim from the family that will be
accepted.
 Death after retirement
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011

Upon the death of an employee after retirement, his / her survivors shall receive an amount
equal to 36 me s of the pens i on benefit as an ins tal lm
e nt s or a lump sum payme nt .
Death after retirement example: Wahidullah Amir
Wahidullah Amir died from heart aa ck at age 67 . He had only recently retired from his job
as an engineer with the Ministry. His wives and children made a claim to access the post
retirement pension benefit.
Wahidullah Amir was being paid 20,000 Afs per month as his pension. The final calculaon of
his death related payout was based on 36 me s hi s pens i on , which equals 720,000 Afs.
Survivors of the deceased are determined based on legal documents.
The following legal documents are required:
a) Death Certificate
b) Legal Inheritance Letter
c) Power of Attorney
Pension benefits are paid to the nominated legal survivor and divided equally among the survivors.
The nominated legal survivor is identified and decided by all survivors in cooperation with the
respective Basic Court in the place where civil service employee was living. The same Basic Court is
responsible for issuing the Power of Attorney to the nominated survivor or appointed attorney.
Only one claim from family will be accepted. All other claims will be rejected.
Pension benefits are paid to the nominated legal survivor and divided equally among the survivors.
The following table provides a summary of the types of eligible survivors of the deceased civil
servant.
Type of survivor
Widow / Widower
Children
Parents
Brothers and Sisters
Description
Wife, husband
Unmarried daughter(s), son(s) under the age of 18, or coupled
with education or disability or have constantly illness prevent
them to work or bound to complete the military service
Father and mother subject to that the employee had been
responsible for his/her support/ custodianship
Unmarried sister(s), brother(s) under the age of 18, or coupled
with education or bound to complete the military service
subject to that the employee had been responsible for his/her
support/ custodianship and the foetus of the deceased female
employee, born alive
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
B. Missing
Pension benefits of a civil servant who goes missing for more than 4 years, his/her survivors shall be
paid an amount equal to thirty-six (36) me s hi s/her final wage [PUT IT IN DEFINITION IF YOU WANT
SO IT APPLIES TO ALL REFERENCES TO FINAL WAGE, INSTEAD OF MENTIONING IT EACH TIME.] of
his/her grade in accordance with the legal certification as a lump sum payment and or as fixedperiod installments.
C.
Disability Retirement
There are two types of disability retirement applicable to this category:
1. work related disability of a civil servant
2. disability caused other than those work related
These two categories have been further divided into full and partial disability:
The benefits range from fifty to eighty percent (50% to 80% of the Final Wage) regardless of
the actual length of service in the case of work related disability.
The benefits range from thirty to fifty (30% to 50%of the Final Wage) in case of non-work
related disability. Actual length of service will be taken into account in this case.
A Civil Service employee who is disabled for causes other than those related to
work, shall be eligible for a disability pension and will be paid as follows:
In the case of a disability of 70% or more and where the length of service is 25
years or more, s/he shall receive pension rights according to Article 10,para 3 of
this Regulation.
2.
In case of a disability of 70% or more and where the length of service is
less than 25 years, he shall receive equal to 50% of his Final Wage.
3.
In case of a disability of 30% or more but less than 70% and where the
length of service is 25 years or more, he shall receive equal to 50% of his Final
Wage.
4.
In case of a disability of 30% or more but less than 70% and where the
length of service is less than 25 years, he shall receive equal to 30% of his Final
Wage.
A civil servant may be eligible for disability retirement if she/he becomes disabled for useful and
efficient service. Disability means a civil servants inability, because of disease or injury, to perform
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
satisfactorily and efficiently the duties of hers/his position. Significant medical documentation is
required prior to approval of a disability pension. The retirement of a civil service employee in case
of disability or illness is approved based on certification by a health panel of disability determination
or authority of the Ministry of Public Health.
The Directorate for Monitoring of Implementation of Health Regulations, Ministry of Public Health
(MoPH) in Afghanistan constitutes the Certification Panel. The Panel is comprised of seven specialist
doctors from the different hospitals in Kabul. The Panel certifies and decides on pension disability
cases. The Panel is constituted quarterly and holds weekly sessions at the MoPH, Great Masoud
Square, Kabul.
Provincial disability certification is provided by local health clinic within each province. The provincial
health clinics send their findings to the Certification Panel, MoPH,Kabul for their final and binding
decision.
Also:
Disability conditions of the disability pensioner shall be reviewed every three (3) years by the same
MoPH Certification Panel.
If s/he is capable of employment after disability, s/he is deprived of their pension benefits until
reaching other retirement conditions/categories or when disability gets re-certified.
A disabled retired person is also deprived of disability pension benefits if:
a) He/she is capable of employment after disability
b) The disability is due to addiction to narcotics and intoxicants
c) When medical history establishing disability is deliberately forged
Disability pension shall be paid with no deduction irrespective of age.
Category 5:
Severance (suspension, forced resignation and absence from the work, working
outside of the civil service grades and end of suspension with pay period)
Civil service employees classified under the category of severance are eligible for pension benefits.
The separate instructions on severance issue will be provided by the IARCSC.
6. DETERMINING ACTUAL LENGTH OF SERVICE
Actual length of Service includes the total years and months of all periods of employment in the civil
service of the Government. All civil servants who been employed according to the old pay scales
qualify to their years of service under the old scheme counted and added to their years of service
under the new pay and grade scheme of IARCSC. That is, when the actual length of service is
calculated the entire period of service under the old and new pay scales will be considered as the
actual length of service.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
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While determining the actual length of service of a civil servant, six months length of service or more
shall be regarded as one year of service, and less than six months will be not taken in consideration.
Example 1 – less than six months service
If a civil servant has worked for twenty-five years and five months his/her actual length of service in
total will be twenty-five years.
Example 2 – six months service
If a civil servant has worked for three years and six months his/her length of service in total will be
four years.
Example 3 – more than six months service
If a civil servant has worked for seven years and eight months his/her length of service in total will be
eight years
7. COVERAGE OF PENSION BENEFITS
Under the Regulation the following public employees qualify for civil servant employee pension
benefits:
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
Civil service employees of Ministries, Attorney General Office, General Independent
Organizations, Independent Commissions, State Owned Enterprises, Administration sections
of Upper and Lower Houses (Parliament), permanent and contract civil service employees of
the Judiciary and mixed companies in which the share of Government ownership is more
than fifty percent
Academic professors of Higher Education Institutions and Academy of Science of
Afghanistan.
Civil service employees, those are working with agreement of the Government in accordance
with the civil service posts in political / cultural agencies, councils and other Afghan
institutions abroad or in United Nations agencies or other International Organizations.
High ranking government officials.
Ministries and Independent Organizations pertaining to military.
And their survivors of the preceding categories where survivors are the persons that are
eligible for the pension benefits of a civil servant employee upon his/her death.
8. PENSION CONTRIBUTIONS
Under the new Regulation the following applies:
The pension contribution is comprised of both civil servant’s and the organization’s contributions.
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The contribution of the civil servant is equivalent to eight percent (8%) of the employee’s monthly
wage and the allowances provided to the post.
The contribution of the organization to the pension treasury is equivalent to eight percent (8%) of
monthly wage along with allowances provided to the post
No tax is imposed on pension contributions.
The Ministry of Finance, Treasury, will issue additional instructions on how to make pension
contributions according to the new Pension Regulations for The Civil Service Employee of
Afghanistan.
9. PENSION CALCULATION
Pension will be calculated on the basis of the actual length of service of the civil servant, the average
basic salary of the civil servant over the last three years of service and the accrual rate which is two
percent (2%) per year. In all cases, pensions cannot exceed eighty percent (80%) of the final wage.
 HOW TO CALCULATE THE FINAL WAGE
The Final Wage is defined as average of the monthly wage and allowances over the final three
(3) years of actual service, taking into account annual increases in wages.
Final Wage calculaon examp l e 1 : Rashid
The most important point to remember is that the Final Wage is an average calculated over
three years only.
In 1387 Rashid was paid 8000 Afs per month. His posion wa s Gr ade 5, St ep 1.
Rashid’s total salary for 1387 was 96,000 Afs. 8000 Afs mulpl y by 12 (m
o nt h) equal s 96000
Afs
Next year, 1388, Rashid was promoted from Step 1 to Step 2, Grade 5. His salary increased
to 8,300 Afs per month.
His total salary for 1388 was 99,600 Afs. 83
99600 Afs
In 1389 Rashid was promoted to Step 3, Grade 5. His salary was now 8,600 Afs.
His total salary for 1389 was 103,200 Afs. 8600 Afs mulpl y by 12( mo nt h) equal s 103200 Afs
Rashid’s total salary for the final three years of service equals 298,800 Afs. To calculate the
average, divide the final salary by the total number of months of service.
298,800 Afs divided by 36 months equals a Final Wage of 8,300 Afs.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
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However, in certain cases individuals will retire with less than three years on new wages after
Pay and Grading reform. In such cases, Final Wage will be calculated on the basis of average for that
actual period of wage payments under Pay and Grading reform.
Final Wage calculation example: Muhannad
Muhannad worked as a senior administration officer in 1389 and in te beginning of that year he
was admitted on the new wage under Pay and Grading reform. As a Grade 4, his salary was
9,900 Afs.
In 1390, Muhannad’s Grade 4 increased to 10,400 Afs per month.
In early 1391, he rer ed aer wor ki ng onl y t wo year s on Pay and Gra di ng scal es . So, his Final
Wage will be calculated on only on the basis of the two years Muhannad worked, so it will be
10,150 Afs.
 Pension Calculation in the Interim period
After Pay & Grading reform has started in the organization, the period of at least next five years will
be treated as an interim pension period. The new Pension Regulation requires higher contributions
from civil service employees compared with the previous scheme; 8% compared with 3%.
Consequently the final pension is higher under the new scheme. Civil Service employees who work
for longer under the new scheme will receive a higher pension than those who have worked for a
2
shorter time under the new system.
It is important to note that the interim period is not the same for everyone. The length of the interim
period depends on when Pay and Grading reform has started for each civil servant. That means the
date the civil servant signed the contract for their new position on the revised pay scale.
The following two case studies help explain the impact of different Pay and Grading contract start
dates on pension calculations during the Interim Period.
Example1: Waheed
Waheed completed the Pay and Grading process on January 01 2008. His interim period, like all
other civil servants, lasts for five years. Waheed’s interim period begins on January 01 2008 and
finishes on 31 December 2013.
Example 2: Samia
2
This interim period may be extended or reduced based on decision made by MOLSAMD, MOF and IARCSC
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
Samia completed the Pay and Grading process on April 10 2009. She works with Waheed in the same
Ministry, but her Directorate participated in Pay and Grading after Waheed’s Directorate had
finished.
Samia’s interim period is also five years, like all other civil servants. Samia’s interim period
commences on April 10 2009 and finishes on April 09 2014.
The accrual rate during this period will be as follows:
If a civil service employee retires less than three years into the new Pay & Grading scheme, the Final
Wage will be multiplied by the total previous length of service multiplied by one point four percent
(1.4%)
Example 1
A civil service employee has worked for less than 3 years under the new Pay& Grading
Scheme. His Final Wage pay is Afs 7,260 and his length of service under the old scheme is 30
years. His pension benefits are calculated as per the law, as follows:
If a civil service employee retires between four and five years into the new Pay & Grading scheme,
the Final Wage will be multiplied by the total length of previous service multiplied by one point
seven percent (1.7%).
Example 2
A civil service employee was recruited at Grade 4. Hers/his length of service under the new
Pay & Grading Scheme is more than 3 years but less than 5 years. Her Final Wage is Afs
9,160. His length of service under the old grading system is 35 years. Her pension benefits are
calculated as per the law, as follows:
Afs 9,160
If a civil service employee retires after five years into the new Pay & Grading scheme, the Final Wage
will be mulpl ied by the tot al lengt h of pr evi ous ser vi ce m
u l pl i ed by t wo per cent (2%) .
Example 3
A civil service employee has worked under the new Pay & Grading Scheme for more than 5
years and then retires. S/He finishes at Grade 3 level with a Final Wage of Afs-13,010. His
length of service under the former pay system was 36 years. Hers/his pension benefits are
calculated as per the law, as follows:
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
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 Pension Calculation in cases of short service
An employee who has worked for less than five years shall receive the lump sum payment of 2
months of Final Wage per year of service and one who has worked between 5 to 10 years shall
receive the lump sum payment of 2 and a half months of Final Wage per year of service. Standard
procedure of application for pension benefit will be used by the HR officer.
10.PAYMENT OF PENSIONS
Following the approval of a pension application, the Pension Department of MoLSAMD will execute
the pension benefits to eligible civil service employees or his/ her survivors.
 The survivors
1. The survivors will be able to collect the benefits all at once (lump sum) or
2. In Installments for fixed period, until all the funds for that pension benefit are exhausted
 Civil service employees
1. The payment of the pension benefits to civil service employees will be made on regular basis
as defined by MoLSAMD. The Government may issue additional instructions on payment of
pension benefits to some categories of pensioners in form of a lump sum.
Payment of pension benefits will be made by bank transfer by the MOF to the bank account of
pensioners. The first payment for everyone will be paid by cheque in case of the absence of a bank
account.
11.PENSION APPLICATION PROCEDURE
1. Preparaon and submi ssi on of Pens i on Appl icaon file
Completing pension application file by a HR Officer is divided in two phases.
Phase 1 – Collecting all necessary information for compiling pension application file
Phase 2 – Completing Pension application File and submitting it to the Pension Department
for further processing
Phase 1
HR Officers will:
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
a) 90 days before rer eme nt , fut ur e rer ee wil l recei ve f rom a HR Officer a Notification
of Retirement form (HRF-01) outlining the choices he/she has about their coming
retirement. The HRF-01 will also contain informaon about any l iabi lies (i f any) ,
right to defer a pension and informaon that 15 days pr i or to thei r last day at wo r k
they will be contacted by relevant HR Officer who will help them complete their
pension application file.
b) Complete Application Form (HRF-03) and secure the approval from the authorized
representative of the organization who has the delegated authority
c) In case of death or disability of an employee, the HRF-02 form is prepared
immediately upon occurrence of such case.
Phase 2
As soon as HRF-02 form is approved, the HR Officers will:
a) 15 to 30 working days prior to future rer ee’ s last day of wo r k a HR Offic er wi ll
initiate the process of the application for retirement and him/her to complete the
Departure Clearance Form (HRF-02).
b) Complete Service Record Form (HRF-04)
c) Complete the Payment Information Form (HRF-05) with existing bank details (if such)
or with all information needed to open new bank account for future pensioner. This
form is sent to the Pension Department who will further communicate it to the MoF.
d) In a case of disability pension obtain from the employee a Disability Certificate from
the Health Certification Panel and complete Disability Notification Form (HRF-06) in
order to inform the Pension Department about the type of disability.
e) In case of death, obtain death certificate from the surviving family of the employee,
and where appropriate, certification for service related death
f) Obtain Copy of the Official ID Card
g) Obtain Copy of the Taskera ID Card
h) Obtain Copy of a Bank Card (account) if exists
In Kabul once the Pension Application file is completed, HR Officer is Sending completed file
to the Pension Department of MoLSAMD within 5 working days of its compleon. I n the
provinces once the Pension Application file is completed, HR Officer is Sending completed
file to the Pension Department of MoLSAMD in Kabul on quarterly basis. All such transfers
of documents will occur in batches and each batch will need to be numbered as
[Organization Code]-[Date Of Transmission]
Retirement Application form (HRF-03) is made in 2 copies (one original and one copy). Upon
submission of complete application file to the PD by a HR Officer, the PD Officer is verifying
the complete file and, if complete and acceptable, stamping and dating the HRF-03 and
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
giving back one copy to HR Officer as a proof that application has been received by the
Pension Department.
A complete application is an application that has NO missing documents or information.
A compliant application is an application that complies with all legislative and procedural
requirements.
2. Electronic submission of the applicaon fil e
When IT system of the Pension Department becomes available to all organizations, the
corresponding HR Officers will be required to enter forms HRF-03, HRF-04, and HRF-05 on
such system. When entered, the system will generate automatic Confirmation Number,
which will need to be put on the forms prior to submission to the Pension Department for
easy verification.
The process consists of the following steps:
1. HR Officer submits a pension application file. Only one copy is required for each
document, except HRF-03 in which case two copies are required as one is stamped by
the PD and given back to the HR Officer.
2. Within 5 to 10 working days, Pension Department reviews the application to ensure it is
complete and compliant with all regulations, including ensuring that all supporting
documents have been filed, that it corresponds to the electronic entry, and that
individual that is applying is eligible.
3. If the application is found to be complete and compliant, and the individual is eligible,
the Pension Department will approve it by issuing Notification of Pension Application
File Receipt Form (PDF-01). The Form will be sent to the HR Officer and will need to be
forwarded to the applying individual. The form will have a unique number and that
number will need to be used for all future communications on that case with the
Pension Department.
4. If the application is found to be incomplete and/or non-compliant, Pension Department
Officer sends a Notification of Receipt of Pension Application (PDF-01) to the relevant
HR Officer, indicating the problem with the application. The HR Officer has 15 days to
respond to the completeness and/or compliance issues.
5. HR Officer then re-submits the application (or its missing parts) to the Pension
Department. If a new form needs to be submitted, the box “Correction” needs to be
marked at the top of the form.
6. Pension Department Officer reviews the application again to ensure it is complete
and/or compliant, including ensuring that all supporting documents have been filed. If
the application is complete and compliant, Pension Department Officer approves it by
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
issuing a Notification of Receipt of Pension Application (PDF-01) and accepts the
application for further processing.
7. If the application remains incomplete and/or non-compliant, Pension Officer may call a
meeting with relevant HR Officer (including other parties, if affected) to discuss
completeness and/or compliance issues and to set out a timeline for resolving the
issues.
8. If step 7 took place, Pension Department Officer sends to the HR Officer a second
Notification of Receipt of Pension Application (PDF-01) that summarizes the issues that
were discussed at the meeting, and sets out the agreed-upon steps that will be taken to
address these issues.
9. If steps 7 and 8 took place, the HR Officer responds to Pension Department Officer’s
second completeness and/or compliance Notification of Receipt of Pension Application
(PDF-01) in accordance with the agreed timeline and re-submits the application file.
10. If steps 7 through 9 took place, Pension Department Officer reviews the application
for completeness and/or compliance, including ensuring that all supporting documents
have been filed. If the application is complete and compliant as described above, Pension
Department Officer approves it by issuing Notification of Receipt of Pension Application
(PDF-01) accepting and approving the application. If the application remains incomplete
and/or non-compliant, Pension Department Officer issues a final Notification of Receipt of
Pension Application (PDF-01) to refuse and reject the application. In this case the whole
application procedure needs to be repeated and restart from the first step.
SUSPENSION OF PENSION AFTER RE-JOINING SERVICE
a) When individual who is already retired decides to re-join the service, on a regular
contract, HR Officer will need to complete the Suspension of Pension Form (HRF-07)
in order to inform the Pension Department of this change.
b) When individual who is already retired re-joins the service and suspends his pension
and after certain period decides to apply for retirement, his/her new pension
application needs to be submitted by relevant HR Officer and must include all
previous service history records. In this case his/her new pension benefit will be
recalculated taking into account the new service period.
DEFERRED PENSION AND DEATH OF EMPLOYEE
Individuals may choose to defer the receipt of pension benefits following separation from
the service and start receiving pension benefits at a later date. In such cases, the application
file must to be submitted to the Pension Department at the time of separation following all
the above procedures.
In cases when a uniform sector employee has deferred a pension but then died before
starting to receive the benefit, the following procedure is applicable:
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
(i)
(ii)
Family members of such individual will have to apply directly to the Pension
Department. They may want to obtain assistance from the HR Officer if required (for
example, to obtain copy of the original PDF-01 form that was sent by the Pension
Department to the HR Officer).
The Pension Department will process this application as a special case and will grant
pension benefit on the basis of the survivorship provisions of the Regulation.
General information
All new forms will be printed and distributed for free to all relevant uniform sector
organizations by MoLSAMD. All new forms will be printed in two official languages of Islamic
Republic of Afghanistan (Dari and Pashtou). In case of shortages of forms relevant
organization needs to approach the Pension Department in Kabul and order new supplies.
 It is the Pension Department responsibility to calculate and award pension
benefit in accordance to the Manual for Pension Department prepared by
MoLSAMD.
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
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Flow Diagram of Pension Application Procedure for HR Officers
Civil service employees
HR Officer prepares issues
Notification of Retirement to eligible
civil service employee (HRF-01)
HR Officer Issues prepares and has
approved Pension Application Form
(HRF-03)
HR Officer prepares and has approved
Departure Form (HRF-02)
HR Officer Issues prepares and has
approved Service Record Form
(HRF-04)
HR Officer prepares Service Record
Form
HR Officer prepares
(HRF-04) Payment
Information Form
(HRF-05)
Future Pensioner receives, accepts
and acknowledges Notification of
Receipt of Pension Application (PDF01)
In a case of disability pension, HR
Officer prepares Disability Notification
Form
(HRF-06)
In a case that Retiree re-joins a service,
HR Officer prepares Temporary
Suspension of Pension Form
(HRF-07)
MoLSAMD Pension Department
Kabul
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DRAFT GUIDEBOOK FOR HR MANAGERS FOR IMPLEMENTATION OF THE PENSION REGULATION FOR THE CIVIL
SERVICE EMPLOYEES OF AFGHANISTAN – March 2011
12.APPEALS
If the civil service employee or their survivor/s are dissatisfied with the pension decision they may
complain directly to the Appeal Commission.
The Appeal Commission comprises three members from MoLSAMD and two members from IARCSC.
The Commission will be formed when required to address the complaints of the civil service
employee or their survivors regarding the calculation and payment of pension benefits.
The appeals commission will meet not less than quarterly and such meetings will be officially called
by the Deputy Minister of Labor [PLEASE DISCUSS WITH BASHIRI!!!]. The Commission will designate a
secretariat with such appeals will have to be submitted.
If the civil service employee or their survivor/s are dissatisfied with the decision made by the Appeal
Commission they may complain to the court.
13. QUESTIONS AND ADDITIONAL HELP
The Pension Department will designate a special telephone line where all inquiries regarding the
application process, eligibility cases, and benefit calculations can be submitted. The MoLSAMD will
notify in due course on the telephone number and hours of operation
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