ISLAMABAD:
The federal government has approved relief for employees retiring after July 2025, resulting in an equal pension increase for all federal pensioners.
In a memorandum issued by the Ministry of Finance, the details of the pension increase and payment process were outlined. The memorandum confirms that all federal pensioners will receive the pension increase on an equal footing.
According to the memorandum, the relief includes the integration of five previous ad-hoc relief allowances, granted between 2011 and 2024, into pension payments. The total cumulative percentage of these allowances amounts to 70%.
The memorandum clarifies that the baseline pension for government employees will be considered as their net pension.
The finance ministry further stated that the gross pension, minus the commuted pension, will include these five ad-hoc reliefs. The five allowances include increases of 15% in 2011, 7.5% in 2015, 15% in 2022, 17.5% in 2023, and 15% in 2024.
