FD clarifies grant of increase in pension

ISLAMABAD: The Finance Division clarified the grant of increase in pension to pensioners of the federal government.

Govt notifies 7% hike in federal pensions from July 1

The division notified that in order to ensure equality of treatment, it is clarified that for the government servants who would retire on or after 01.07.2025, the baseline pension shall be the net pension (gross pension less commuted portion of pension) plus following increases in pension: (i) 15 percent allowed vide Finance Division’s OM No F1(5)-Imp/2011-419, dated 4th July, 2011; (ii) 7.5 percent allowed vide Finance Division’s OM No 4(1)-Reg 6/2015-697, dated 7th July 2015; (iii) 15 percent allowed vide Finance Division’s OM No 4(1)-Reg 6/2022-486, dated 1st July 2022; (iv) 17.5 percent allowed vide Finance Division’s OM No 4(1)-Reg 6/2023, dated 5th July 2023; and (v) 15 percent allowed vide Finance Division’s OM No 4(1)-Reg 6/2023,dated 10th July 2024.

Copyright Business Recorder, 2025