Finance Division Grants 7% Pension Hike

Finance Division Grants 7% Pension Hike

| 07-Aug-2025

Islamabad, August 7, 2025, 02:00 PM PKT — The Finance Division has unveiled a significant update, confirming a 7% hike in pensions for federal government pensioners, effective July 1, 2025, as detailed in a recent notification, signaling relief for retirees. For those retiring on or after July 1, 2025, the baseline pension will factor in the net pension (gross minus commuted portion) plus cumulative increments: 15% from July 4, 2011 (OM No F1(5)-Imp/2011-419), 7.5% from July 7, 2015 (OM No 4(1)-Reg 6/2015-697), 15% from July 1, 2022 (OM No 4(1)-Reg 6/2022-486), 17.5% from July 5, 2023 (OM No 4(1)-Reg 6/2023), and 15% from July 10, 2024 (OM No 4(1)-Reg 6/2023).

This move aims to support pensioners, but web context on past increases shows implementation lags, while posts found on X reflect mixed reactions—some welcome the boost, others question timeliness. Critically, the narrative of “pension relief” may mask funding constraints—web data hints at budget pressures, and X sentiment suggests distrust in consistent support, pointing to potential challenges.

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