Government of Pakistan, Finance Division, issued a Notification on 29-07-2026 in connection with the increase in Pension 2026 Federal @ 7% to Federal Pensioners. The details are as follows:
Increase in Pension 2026 Federal @ 7% to Federal Pensioners
As per the Notification of the Ministry of Finance, the undersigned is directed to convey the approval of the Federal Government to grant an increase @7% on baseline pension with effect from 1st July, 2026 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 baseline pension shall be as decided/determined vide Finance Division’s O.M. No.9(3)R-6/2024-403 dated 01.01.2025 read with Finance Division’s O.M. No. 4(1)REG.6/2025 dated 07.07.2025 and Finance Division O.M. No. 4(1)REG.6/2025 dated 05.08.2025.
Increase in Pension to Pensioners Retired on or After 1st July 2026
The increase in pension @7% as mentioned at para-1 above shall also be admissible to the pensioners who retired on or after 01.07.2026.
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Pension Increase Admissibility 2022 and 2025
The increases in pension @15% allowed vide Finance Division’s O.M. No. 4(1)-Reg.6/2022-486, dated 01.07.2022 and @7% allowed vide Finance Division O.M. No. 4(1)REG.6/2025 dated 07.07.2025 shall remain admissible to the Government employees retiring on or after 01.07.2026.
Family Pension Increase
The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977 as amended from time to time, on pension sanctioned under the Central Civil Services (Extraordinary 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 proportional basis.
The increase in pension sanctioned in this O.M. 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.
Good Thing for Pensioners
There is a good thing for the pensioners in this Notification is that the pensioners will get the increase of the years 2022 and 2025.
Baseline pension is last pension drawn minus medical allowance
1.What about other increases i.e 15% -2011, 7.5% 2015, 17.5% 2023 and 15% 2024 for those who retired on or after 01-07-2026.
2.It is not clear in the OM.
3. Kindly explain