ISLAMABAD (Kashmir English): The Federal government has announced a 7 percent increase in pensions for those retiring from the Civil Servants and Armed Forces, which would serve as a source of relief for pensioners amidst the challenge posed by rising costs of living.
According to the office memorandum issued by the Ministry of Finance, the pension increase will be effective from July 1st, 2026. All civil pensioners of the federation, including those paid from defence estimates and those who are retiring from the services of armed forces and civil armed forces, shall be included in this scheme.
According to the notification, the increased amount shall be admissible to all government employee(s) retiring on or after 1st July 2026.
Ministry clarified that the pensions are granted under the Pension-cum-Gratuity Scheme, 1954, and the Liberalised Pension Rules, 1977, and amendments thereto, as well as those sanctioned under the Central Civil Services (Extraordinary Pension) Rules, are covered, as is the Compassionate Allowance under_CSR-353.
When a pension sanctioned by the federal government is shared by another government pursuant to the provisions of Part IV of Appendix III to the Accounts Code, Volume I, the percentage increase of 7% shall be distributed to both governments in the same proportion, the notification stated.
There is no entitlement to this increase for those receiving the Special Additional Pension instead of the pre-retirement Orderly Allowance and the monetised amount of the driver or orderly.
