ISLAMABAD, 31 JULY (DNA) — The federal government has issued a notification, officially approving a 7% increase in pensions for retired civil servants and armed forces personnel, effective from July 1, 2026. According to an Office Memorandum issued by the Ministry of Finance, the federal government has approved a 7% increase in the baseline pension with effect from July 1, 2026, for all civil pensioners of the federal government, including civilians paid from Defence Estimates, as well as retired personnel of armed forces and civil armed forces personnel.
The 7% increase in pension shall also be admissible to pensioners who retire on or after July 1, 2026. The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, the Liberalised Pension Rules, 1977, as amended from time to time, on pensions sanctioned under the Central Civil Services (Extraordinary Pension) Rules, as well as on the Compassionate Allowance under CSR-353.
If the gross pension sanctioned by the Federal Government is shared with any government in accordance with the rules laid down in Part IV of Appendix III to the Accounts Code, Volume I, the amount of the increase in pension will be apportioned between the federal government and the other government concerned on a proportionate basis.
The increase in pension sanctioned under this OM will not be admissible on the Special Additional Pension allowed in lieu of the pre-retirement Orderly Allowance and the monetised value of a driver or an orderly, the O.M. concluded. — DNA
