The Ministry of Finance has unveiled three significant amendments to pension rules. Family pensions will now be capped at 10 years, with only legal heirs eligible for pension transfers if the pensioner passes away. The spouse of a deceased pensioner will receive a pension for 10 years, while disabled children of deceased pensioners are entitled to lifelong pensions.

Additionally, measures have been introduced to discourage early retirement, including a 3% pension reduction for each year of early retirement, up to a maximum of 20% for civil armed forces personnel.

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Previously, the Pakistan government increased salaries and pensions in the Budget 2024-25, including a 25% rise in the ad hoc relief allowance for employees up to grade-16 and a 20% increase for those in grades 17-22. Federal employee pensions have also been raised by 15%.