ISLAMABAD: The federal government has notified the 17.5 percent increase in the pension for the pensioners of the federal government.

The Division issued a notification which stated that the President has sanctioned an increase @ 17.5 per cent of net pension with effect from 18 July 2023 until further orders 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.

The increase in pension @ 17.5 per cent will also be admissible to the pensioners who would retire on or after 01.07.2023. For the purpose of admissibility of an increase in pension sanctioned in this OM. the term “Net Pension” means “Pension being drawn” minus “Medical Allowance”.

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The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary 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 in this OM will not be admissible on special additional pension allowed in lieu of pre-retirement orderly allowance and monetized value of a driver or an orderly, the notification added.

Copyright Business Recorder, 2023