The federal government has announced a 7 per cent increase in the basic pension of civil pensioners, retired civilian employees receiving pensions from defence estimates, retired armed forces personnel, and civil armed forces pensioners on Thursday.
According to an Office Memorandum issued by the Ministry of Finance, the increase will take effect from July 1, 2026.
The notification said that the increase will apply to all pensioners whose baseline pension has been fixed under the related instructions that have been issued by the Ministry of Finance.
This also includes pensions determined under the instructions issued on January 1, 2025, July 7, 2025, and August 5, 2025.
The Ministry of Finance also said the 7 per cent increase will apply to government employees who retire on or after July 1, 2026.
The document added that the 15 per cent pension increase announced on July 1, 2022, and the 7 per cent increase approved on July 7, 2025, will also remain applicable for newly retired employees.
The pension increase will also apply to family pension, Pension-cum-Gratuity Scheme 1954, Liberalised Pension Rules 1977, pensions granted under the Central Civil Services (Extraordinary Pension) Rules, and compassionate allowance.
The ministry said that if a pension is shared between the federal government and another government under existing rules, the additional amount will also be shared according to the same ratio.
However, the 7 per cent increase will not apply to the special additional pension given in place of the pre-retirement orderly allowance or to the monetised value of a driver or orderly.
Punjab govt to release salaries, pensions early
The Punjab government has announced that salaries, allowances and pensions for government employees and pensioners will be released on July 31, ahead of the regular payment schedule.
According to the provincial Finance Department, the decision was taken as August 1 and 2 fall on Saturday and Sunday, ensuring employees and pensioners receive their payments before the weekend.
