ISLAMABAD – The federal government has announced a significant relief package for pensioners, offering financial ease to retired employees, particularly those retiring on or after July 1, 2025. According to an official memorandum issued by the Federal Ministry of Finance, all federal pensioners will now receive uniform pension increases, alongside a structural revision of their pension calculations.
The policy change was detailed in a memorandum that outlines how five previous ad-hoc relief allowances, granted between 2011 and 2024, will now be merged into the net pension. The combined value of these allowances amounts to up to 70% of the pension, providing a notable boost to the long-term financial stability of retired employees.
The Finance Ministry clarified that the net pension will now serve as the baseline for all calculations, marking a departure from previous models that considered gross figures. The following ad-hoc allowances are now officially part of the pension structure:
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15% relief granted in 2011
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7.5% relief in 2015
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15% in 2022
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17.5% in 2023
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15% in 2024
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These increments, which were earlier treated as temporary measures, have now been institutionalized, reducing disparities between past and newly retiring employees.
In parallel developments, sources in the Punjab provincial government have hinted at an upcoming 10% salary increase for current employees and a 7% rise in pensions for provincial pensioners. While the official announcement is still pending, insiders suggest that the proposal has gained traction in the provincial cabinet amid rising inflation and public pressure.
These changes are part of broader governmental efforts to address cost-of-living concerns and ensure equitable treatment for public sector employees across federal and provincial levels
