ISLAMABAD – The federal government has approved a 7% increase in the baseline pension of all civil pensioners, civilian beneficiaries receiving pensions from defence estimates, retired personnel of the armed forces, and pensioners of the civil armed forces. According to an Office Memorandum issued by the Ministry of Finance, the increase will take effect from July 1, 2026. The memorandum states that the 7% increase will also be applicable to government employees retiring on or after July 1, 2026. It further clarified that the 15% pension increase granted on July 1, 2022, and the 7% increase approved on July 7, 2025, will continue to apply to government employees retiring on or after July 1, 2026. The notification said the latest increase will also be admissible on family pensions, pensions sanctioned under the Pension-cum-Gratuity Scheme 1954, the Liberalised Pension Rules 1977, the Central Civil Services (Extraordinary Pension) Rules, and compassionate allowance.