The federal government has officially announced a Pension increase of 7 percent for retired civil servants and armed forces personnel. The revised payment will take effect from July 1, 2026.
The increase was approved through an Office Memorandum issued by the Ministry of Finance. The decision aims to provide financial relief to pensioners dealing with the rising cost of living.
According to the notification, the revised Pension applies to all federal civil pensioners. This also includes civilian employees whose salaries were paid from Defence Estimates.
Retired members of the armed forces and civil armed forces will also receive the increased pension. The government said the revised rates will benefit both existing and future retirees.
The notification further states that employees retiring on or after July 1, 2026, will also qualify for the 7 percent increase. This ensures that newly retired government workers receive the same revised benefits.
The Ministry of Finance clarified that the increase covers several categories of pensions. Family pensions granted under the Pension-cum-Gratuity Scheme, 1954, are included in the latest revision.
The increase also applies to pensions provided under the Liberalised Pension Rules, 1977, along with later amendments. In addition, pensions granted under the Central Civil Services (Extraordinary Pension) Rules are covered.
Compassionate Allowance provided under CSR-353 will also receive the 7 percent increase. This means a wide range of eligible beneficiaries will receive higher monthly payments.
The notification also explains how the increase will work in shared pension cases. Some retired employees receive pensions jointly funded by the federal government and another government under existing financial rules.
In such cases, the additional amount will be divided between both governments according to their approved share. The arrangement follows the rules outlined in Part IV of Appendix III of the Accounts Code, Volume I.
However, the Finance Ministry clarified that not every payment is included in the latest revision. The increase does not apply to the Special Additional Pension granted instead of the pre-retirement Orderly Allowance.
Similarly, the monetised value of a driver or orderly will not be included in the revised calculation. These benefits will continue under the existing rules without any additional increase.
The latest Pension revision is expected to provide financial support to thousands of retired government employees across Pakistan. The increase comes as many pensioners continue to face higher living expenses due to inflation.
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Officials say the revised payments will begin from July 1, 2026, in line with the Finance Ministry’s notification. Eligible pensioners and future retirees will receive the updated amount according to the applicable rules.
