The federal government has officially notified a 7% increase in pensions for retired civil servants and armed forces personnel, with effect from July 1, 2026, as part of its efforts to provide financial relief amid rising living costs.
The increase was approved through an office memorandum issued by the Ministry of Finance and applies to federal government pensioners, including civilian employees paid from defense estimates, retired members of the armed forces, and personnel of the civil armed forces.
Who Will Receive the 7% Pension Increase?
According to the notification, the pension increase will apply to:
- Retired federal civil servants
- Civilian employees paid from defense estimates
- Retired armed forces personnel
- Retired civil armed forces personnel
- Government employees retiring on or after July 1, 2026
The revised pension will also be available to future retirees from the effective date, ensuring they benefit from the latest increase.
Family Pensioners Also Covered
The Finance Ministry said the increase also extends to several categories of family pensions, including those granted under:
- Pension-cum-Gratuity Scheme, 1954
- Liberalised Pension Rules, 1977, including subsequent amendments
In addition, pensions sanctioned under the Central Civil Services (Extraordinary Pension) Rules and Compassionate Allowance under CSR-353 will also qualify for the 7% increase.
Shared Pension Cases
For pensioners whose gross pension is shared between the federal government and another government under Part IV of Appendix III to the Accounts Code, Volume I, the additional 7% pension will be divided proportionately between the respective governments.
Allowances Not Included
The notification clarifies that the increase does not apply to:
- Special Additional Pension granted in lieu of the pre-retirement Orderly Allowance
- Monetised value of a driver or orderly
These components will remain unchanged under the latest pension revision.
The notification takes effect from July 1, 2026, providing an increase in monthly pension payments for eligible federal pensioners across Pakistan.
