ISLAMABAD: The Finance Division has notified a 7 per cent increase in net pension for retired civilian and armed forces personnel of the federal government, effective from July 1, 2025. As per the notification issued by the federal government says that this increase is also applicable to civilians paid from defence estimates, retired armed forces personnel, and civil armed forces personnel.
This raise will be calculated on the net pension drawn as of June 30, 2025, the notification said. This means that the increase will not be calculated on the medical allowance. The increased pension will also be applicable on new retirees.
The increase will also be admissible on family pension granted under the pension-cum-gratuity scheme, 1954, and Liberalised Pension Rules, 1977 on pension sanctioned under the Federal Civil Services (Extraordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.
However, the increase will not apply to the Special Additional Pension granted in place of pre-retirement Orderly Allowance or the monetized value of a driver or an orderly.
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