Government of Pakistan, Finance Division (Regulation Wing) issued a Notification on 05-07-2023 in connection with the Increase in Pension 2023 Federal Pensioners. Federal Government enhanced the pension @ 17.5% of net pension with effect from 1st July 2023. The details are as under:
Enhancement / Increase in Pension 2023 Federal Pensioners @ 17.5%
| Sr. No | Description | Details |
| 1 | Notification | Increase in Pension 2023 |
| 2 | Pensioners | Federal Pensioners |
| 3 | Effective Date | 1st July 2023 |
| 4 | Rate of Enhanced Pension | @ 17.5% of net Pension |
| 5 | Net Pension Means | Pension without a medical increase pension |
Grant of 17.5% Increase in Pension to Pensioners of Federal Government
The government of Pakistan announces a 17.5% increase in pension of Pensioners. All Federal Government retired employees are eligible to receive this grant.
Approval of 17.5% Increase in Pension of Federal Government Employees
The President is pleased to sanction an increase 17.5% increase in pension. All those employees who served the government in their best ways are happy to receive this grant. As they are also facing the huge pressure of increasing rate of inflation. They also want to support their families and meet living expenses. They need this grant, as their current pension is not enough to meet their monthly expense.
Admissibility of a 17.5% increase in Pensions
The government of Pakistan approves an of17.5% increase in pensions on many conditions. An increase in Pension is admissible in the following cases only:
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Federal Employees Retire After 1st July 2023
All those federal government employees who have retired from service and are going to retire after 1st July 2023 are also eligible.
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Admissibility on Family Pension
The increase is also admissible to family pensions. Pension sanctioned under Central Civil Services Rules as well as on the compassionate Allowance under CSR-353.
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Proportioning the Increase in Pension between Federal and Other Government
If Federal Government sanctioned Gross Pension is shared with any other government in accordance with rules of Part-IV of Appendix-III. Then the amount of increase in pension will be apportioned between the federal and other Governments concerned on a proportional basis.
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Civil Pensioners
All civil Pensioners of the Federal Government including Civilians paid from Defence Estimates are eligible. As well as retired Armed Forces Personnel and Civil Armed Forces Personnel are eligible.
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Meaning of Net Pension
For the purpose of admissibility of increase in pension sanctioned in the O.M. the term “Net Pension” means “Pension Being Drawn “ Minus Medical Allowance.
The above Notification of enhancement of pension is for retired pensioners. The employees who will retire after 1st July 2023 will also get benefit from this Notification. Federal Government Finance Department has also issued the Notification Adhoc Relief Allowance 2023 @ 30% and 35% for the serving employees.
“Net Pension” means “Pension being drawn” minus “Medical Allowance”
that is
Net Pension 65% of Gross Pension, plus
Added 15% increase of 01.7.2011, plus
Added 7.5% increase of 01.7.2015, plus
Added 15% increase of 01.7.2022
Damn it! This is no favour to pensioners as it excludes medical allowance for the sake of calculation. This blind and deaf government thinks that retired people do not fall sick or perhaps it feels that they do not need to recover. Even otherwise the cost of living has increased threefold and the increase in pensions is merely peanuts The pensioners have got all the reasons to blast this insensitive government for its callousness towards the senior citizens.
Allah will never allow PDM to come to power again.
17.% increase ho gai hay aour kitni increase honi chahiay?
Aslam O Alaikum,
Sir what means “Net Pension”. normally in existing Rules we calculated the pension as under:-
If a person retire on 01.07.2023 we calculate:-
i- Gross Pension
ii- Less Commute Value 35% of Gross Pension
iii- Net Pension 65% of Gross Pension
iv- Added 15% increase of 01.7.2011
v- Added 7.5% increase of 01.7.2015
vi- Added 15% increase of 01.7.2022
vii- Added 17.5% increase 01.7.2023
In net pension 7.5% increase calculated as per value of Sr. No. ( iii) of net pension???????
Your reply / guide line in this regard should highly be appreciated.
“Net Pension” means “Pension being drawn” minus “Medical Allowance”
that is
Net Pension 65% of Gross Pension, plus
Added 15% increase of 01.7.2011, plus
Added 7.5% increase of 01.7.2015, plus
Added 15% increase of 01.7.2022
Aslam O Alaikum,
Dear Ibrahim Sahim, I think we added 17.5% increases as on 01.07.2023. R U Agreed????