ISLAMABAD: The federal government has approved a pension relief package for employees retiring on or after July 1, 2025. According to the Ministry of Finance, the increase will apply equally to all federal pensioners under a uniform policy.
A formal office memorandum issued by the Finance Division outlines the implementation of this relief. It confirms that five previous ad hoc relief allowances granted between 2011 and 2024 will now be included as part of the pension calculation.
These allowances granted in 2011 (15%), 2015 (7.5%), 2022 (15%), 2023 (17.5%), and 2024 (15%) together account for up to a 70% increase, which will now be reflected in the pension structure.
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As per the memorandum, the government has declared that the baseline pension of employees will be treated as the “net pension.” From the gross pension amount, the commuted portion will be deducted, and the five ad hoc increases will be added to determine the updated pension.
The policy is aimed at standardizing pensions and ensuring fair treatment for all federal retirees, the Finance Ministry said.
