Details of the Pension Increase for Federal Government Pensioners: An Important Clarification

The Federal Government of Pakistan issued an important office memorandum on August 5, 2025, aimed at providing equal treatment and clear guidance on pension increases for federal government pensioners. The memorandum clarifies the basis for calculating the pensions of government employees retiring on or after July 1, 2025.

According to this important announcement, the base pension for newly retired employees will be as follows:

• Net Pension + Sum of all previously issued pension increases
• Net pension refers to the amount remaining after deducting the commuted portion from the gross pension.

Pension increases made by the Government of Pakistan on various occasions will be included in the calculation of the base pension for newly retired employees. These increases are as follows:

• 15% Increase: According to Finance Division Office Memorandum No. F. 1(5)-Imp/2011-419, dated July 4, 2011.
• 7.5% Increase: According to Finance Division Office Memorandum No. 4(1)-Reg.6/2015-697, dated July 7, 2015.
• 15% Increase: According to Finance Division Office Memorandum No. 4(1)-Reg.6/2022-486, dated July 1, 2022.
• 17.5% Increase: According to Finance Division Office Memorandum No. 4(1)-Reg.6/2023, dated July 5. 2023.
• 15% Increase: Office of the Finance Division Memorandum No. 4(1)-Reg. 6/2023, dated July 10, 2024.

The primary objective of this clarification is to ensure equal treatment for all pensioners, regardless of their retirement date. This measure will not only create transparency but also make it easier for pensioners to obtain their full entitlements.

This memorandum has been issued in compliance with previous orders from the Department of Finance, Regulation Section, and a copy has been sent to the Comptroller General of Accounts, the Military Accountant General, the Secretary to the President, and all other relevant Ministries and Departments to oversee its implementation.

The objective of this important update is to clarify any confusion that may arise between public employees and pensioners and to clarify the Federal Government's commitment to the well-being of its retired employees.

Note: This blog post was prepared based on Official Memorandum (OM) No. 4(1) REG.6/2025, dated August 5, 2025, issued by the Department of Finance, Government of Pakistan. For more information, please read the original document or consult the relevant department. for more updates visit gbcareerhub.info for latest gove. notification, office memorendum and offial announcements 

Details of the Pension Increase for Federal Government Pensioners: An Important Clarification