ISLAMABAD – The federal government has approved a 7 percent increase in pensions for retired government employees and armed forces personnel, with the revised payments set to take effect from July 1, 2026.
The decision was issued through an Office Memorandum by the Ministry of Finance, covering federal civil pensioners, including those whose pensions are paid through Defence Estimates, as well as retired members of the armed forces and civil armed forces.
The increase will also apply to employees who retire on or after the effective date of the revised pension adjustment.
According to the notification, the enhancement will be applicable to various categories of pensions, including family pensions under relevant pension schemes and rules. It will also cover pensions granted under extraordinary pension provisions and compassionate allowances where applicable.
The government has also clarified that if a pension payment is shared between the federal government and another government entity under existing financial rules, the additional amount will be distributed between the concerned authorities according to their respective shares.
However, the approved increase will not apply to certain special additional pension benefits provided in place of pre-retirement orderly allowances or the monetised value of driver or orderly facilities.
The notification completes the government’s formal approval process for the pension adjustment.
