ISLAMABAD: The Finance Division has notified a 7 percent increase in net pension for all civil pensioners of the federal government, effective from July 1, 2025.
The increase also applies to civilians paid from defence estimates, retired armed forces personnel, and civil armed forces personnel.
According to an office memorandum issued by the division, the president has approved the 7 percent raise, which will be calculated on the net pension being drawn as of June 30, 2025, excluding the medical allowance. This adjusted net pension will serve as the baseline for future pension increases.
The increase will also apply to individuals retiring on or after July 1, 2025. Family pensions under the Pension-cum-Gratuity Scheme of 1954, the Liberalized Pension Rules of 1977, the Federal Civil Services (Extraordinary Pension) Rules, and the Compassionate Allowance under CSR-353 are included in the adjustment.
The 7 percent increase will be treated as a separate amount as per Finance Division Office Memorandum No. 9(3)R-6/2024-403 dated January 1, 2025.
In cases where the gross pension is shared between the federal government and any other government according to the rules in Part-IV of Appendix-III of the Accounts Code, Volume-I, the increase will be divided on a proportionate basis.
The increase will not apply to the Special Additional Pension granted in place of pre-retirement Orderly Allowance or the monetized value of a driver or an orderly.
