The federal government has officially announced a Pension Increase of 7 percent for retired civil servants and armed forces personnel. The revised pension 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 facing higher living expenses.
According to the notification, the Pension Increase applies to all federal government civil pensioners. It also covers civilian employees whose pensions are paid from Defence Estimates.
Retired members of the armed forces and civil armed forces will also receive the revised pension. This ensures that a wide range of federal pensioners benefit from the latest increase.
The Ministry of Finance stated that the revised pension will also apply to employees who retire on or after July 1, 2026. This means future retirees will receive the increased pension from the start of their retirement.
The notification further explains that family pensions are also included in the revised policy. The increase will apply to family pensions granted under the Pension-cum-Gratuity Scheme, 1954.
In addition, family pensions issued under the Liberalised Pension Rules, 1977, along with later amendments, will qualify for the increase. This allows eligible families to receive the same benefit.
The government also confirmed that pensions granted under the Central Civil Services (Extraordinary Pension) Rules will receive the increase. Compassionate Allowance provided under CSR-353 is also covered by the new notification.
The Ministry of Finance clarified how the increase will be calculated in shared pension cases. Some pensions are jointly paid by the federal government and another government under existing rules.
In such cases, the Pension Increase will be divided between both governments according to their respective share. The distribution will follow the provisions outlined in Part IV of Appendix III to the Accounts Code, Volume I.
However, the notification also lists certain exclusions. The increase will not apply to the Special Additional Pension provided in place of the pre-retirement Orderly Allowance.
Similarly, the monetised value of a driver or an orderly will not be included in the revised pension calculation. These components will remain unchanged despite the overall pension revision.
The latest decision reflects the government’s effort to support retired employees through a higher monthly pension. The revised payments will become effective from July 1, 2026, for both existing and eligible future retirees.
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Pensioners covered under the notification can expect the updated amount according to the rules outlined by the Ministry of Finance. The government has also clarified the categories included and excluded to avoid confusion regarding the implementation of the 7 percent pension revision.
