Finance Division clarifies pension increase for federal government pensioners

The Finance Division has clarified the details of the pension increase for federal government pensioners.

The division confirmed a 7% hike in pensions, effective from July 1, 2025. 

In a notification, the government explained that for those retiring on or after July 1, 2025, the baseline pension will be the net pension (gross pension minus the commuted portion), along with several increments from previous years.

These increments include:

• 15% increase from July 4, 2011 (Finance Division’s OM No F1(5)-Imp/2011-419),

• 7.5% increase from July 7, 2015 (Finance Division’s OM No 4(1)-Reg 6/2015-697),

• 15% increase from July 1, 2022 (Finance Division’s OM No 4(1)-Reg 6/2022-486),

• 17.5% increase from July 5, 2023 (Finance Division’s OM No 4(1)-Reg 6/2023),

• 15% increase from July 10, 2024 (Finance Division’s OM No 4(1)-Reg 6/2023).