The federal government has approved a 7% increase in the basic (baseline) pension for all civil pensioners, civilian pensioners paid from defence estimates, retired members of the armed forces, and pensioners of the civil armed forces.
According to a private TV channel, the increase will take effect from July 1, 2026. It will apply to all pensioners whose baseline pension was determined in accordance with the Ministry of Finance’s instructions dated January 1, 2025, July 7, 2025, and August 5, 2025.
In an Office Memorandum issued by the Ministry of Finance, it was stated that this 7% increase will also be available to government employees who retired on or after July 1, 2026.
According to the document, the 15% pension increase granted on July 1, 2022, and the 7% increase approved on July 7, 2025, will also continue to remain applicable to government employees retiring on or after July 1, 2026.
The Office Memorandum further states that the increase will apply to family pension, pensions granted under the Pension-cum-Gratuity Scheme, 1954, the Liberalized Pension Rules, 1977, the Central Civil Services (Extraordinary Pension) Rules, and Compassionate Allowance.
The notification also states that where a pension is being paid on a shared basis between the federal government and another government under the applicable rules, the amount of the pension increase will likewise be shared between the two governments in the prescribed proportion.
The Ministry of Finance clarified that the 7% increase approved under this Office Memorandum will not apply to the Special Additional Pension granted in lieu of the Pre-Retirement Orderly Allowance, nor to the monetized value of a driver or orderly.
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