Federal Government Announces 7% Pension Increase Effective July 1, 2026
ISLAMABAD: The federal government has officially approved a 7% increase in pensions for retired civil servants and armed forces personnel, with the revised pension rates taking effect from July 1, 2026.
The decision has been notified through an Office Memorandum issued by the Ministry of Finance, confirming the implementation of the pension increase for eligible retirees.
Who Will Receive the Pension Increase?
According to the notification, the 7% increase applies to:
- Retired federal government civil servants.
- Civilian employees whose pensions are paid from Defence Estimates.
- Retired members of the Pakistan Armed Forces.
- Personnel of the Civil Armed Forces.
The increase will also be available to employees who retire on or after July 1, 2026.
Family and Other Eligible Pensions Included
The revised pension increase also covers several categories of pensions, including:
- Family pensions granted under the applicable pension schemes.
- Extraordinary pensions issued under relevant civil service rules.
- Compassionate allowances provided under the applicable government regulations.
Officials stated that these categories will receive the approved increase in accordance with existing pension rules.
Pension Sharing Arrangements
For pension cases where the financial responsibility is shared between the federal government and another government under applicable regulations, the additional pension amount will be distributed proportionately between the concerned governments.
Special Additional Pension Not Included
The Ministry of Finance clarified that the 7% increase will not apply to the Special Additional Pension granted in place of certain pre-retirement allowances, including benefits related to orderly or driver facilities.
Relief for Pensioners
The notification is part of the government’s measures to provide financial relief to pensioners in line with the current fiscal policy.
Eligible pensioners are expected to receive the revised pension amount from July 1, 2026, in accordance with the implementation schedule issued by the relevant authorities.
