The federal government has approved a 7% increase in pensions for retired federal employees, effective from July 1, 2026. The decision is expected to provide financial relief to thousands of pensioners across the country.
The pension increase will apply to retired federal civilian employees, members of the armed forces, civil armed forces personnel, and eligible family pensioners. The revised payments will be calculated using the updated baseline pension formula introduced under the government’s pension reform policy.
The government has also confirmed that employees who retire on or after July 1, 2026, will receive the increased pension under the new rules. Eligible family pensioners will also benefit from the increase according to the relevant pension schemes.
Officials said the decision is part of the government’s efforts to improve financial support for retired public servants. Rising living costs have made it difficult for many pensioners to manage their daily expenses, and the increase is intended to help reduce some of that financial pressure.
The revised pension payments will be made according to the updated pension system introduced as part of the government’s ongoing reforms. These reforms aim to make the pension system more transparent, efficient, and sustainable while ensuring that eligible beneficiaries receive the support they deserve.
The 7% increase is expected to benefit thousands of retired employees and their families across Pakistan. The government believes that this step will strengthen social support for pensioners, improve their financial well-being, and provide greater stability for those who have spent years serving the country in different public sector departments.
