Federal Government Announces 7% Pension Increase – Complete Details (2025)
Published: July 7, 2025 | Updated: July 8, 2025 | By: GBCareerHub Team
Breaking News: The Government of Pakistan has approved a 7% increase in pension for all federal government pensioners, including armed forces and civil armed forces personnel. The increase takes effect from July 1, 2025.
Key Highlights of the Pension Increase Notification
- 7% increase on net pension (after deducting medical allowance)
- Applicable to all federal civil pensioners, including civilians paid from defence estimates
- Includes retired armed forces personnel and civil armed forces
- Also applies to those who retire on or after July 1, 2025
- Covers family pension under various pension schemes
- Increase calculated on pension as of June 30, 2025
Who is Eligible for the 7% Pension Increase?
The pension increase applies to:
- All civil pensioners of the federal government
- Civilians paid from defence estimates
- Retired armed forces personnel
- Civil armed forces personnel
- Family pensioners under various schemes
- Those receiving compassionate allowance under CSR-353
Note: The increase will not apply to Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and the monetized value of a driver or an orderly.
How is the Increased Pension Calculated?
The term "net pension" means:
Net Pension = Pension being drawn as on June 30, 2025 MINUS Medical Allowance
This amount will serve as the baseline pension for computing this and future increases.
Implementation Details
- The increase will be maintained as a separate amount as per Finance Division's earlier notification
- For shared pensions (with provincial governments), the increase will be apportioned proportionately
- The increase will appear as a separate component in pension statements
Frequently Asked Questions (FAQs)
Q: When will the increased pension amount be paid?
A: The increase is effective from July 1, 2025, and should reflect in the next pension payment after the notification.
Q: Do I need to apply for this increase?
A: No, the increase will be applied automatically to all eligible pensioners.
Q: Will this increase affect my medical allowance?
A: No, the medical allowance remains separate and is deducted before calculating the increase.
Q: Is this increase permanent?
A: Yes, this becomes part of your permanent pension amount and will be the base for future increases.
Q: Where can I check if my pension has been increased?
A: You can check your pension slip or contact your respective pension disbursing office.
Official Notification Excerpt
"The President has been pleased to sanction an increase @ 7% of net pension with effect from 1 July, 2025 to all Civil Pensioners of the Federal Government including Civilians paid from Defence Estimates as well as retired Armed Forces Personnel and Civil Armed Forces Personnel."
- Ministry of Finance, Government of Pakistan (Notification No.4(1)REG.6/2025)
What Pensioners Should Do Now
- Check your July 2025 pension statement for the increase
- Keep a copy of this notification for reference
- Contact your pension office if the increase doesn't reflect by August 2025
- Update your budget planning to account for the increased amount
Stay tuned to GBCareerHub for more updates on government notifications and pension-related news!
Disclaimer: This is an informational post based on the official notification. For official confirmation, please refer to the original notification from the Ministry of Finance, Government of Pakistan.
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