The government of Khyber Pakhtunkhwa (KP) has finally decided to increase the pension of retired government employees.
As per the earlier announcement, the KP government was bound to increase the pension by 7 per cent with effect from July 1, 2026.
According to media reports, the government has approved the increase in the net pensions of the employees.
The officials of the government said that retired employees or those about to retire will now be able to take benefit from their pension with a 7% increase in it.
The Khyber Pakhtunkhwa government has issued a notification outlining the terms and conditions of a 7% increase in pensions for retired provincial government employees.
According to the Finance Department, the increase will be calculated on the net pension drawn as of 30 June 2026. Employees retiring on or after July 1, 2026, will also be eligible for the pension increase.
The notification said the increase will also apply to family pensions and compensatory allowances, extending the benefit to eligible dependants of deceased pensioners.
It added that provincial government pensioners residing abroad would also be entitled to the increase, subject to the prescribed rules and conditions.
However, the Finance Department clarified that the 7% increase will not be applicable to any Special Additional Pension already being received by pensioners.
The pension increase is expected to provide financial relief to thousands of retired government employees and their families amid rising living costs.
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