Government grants generous 17.5% pension boost to retired employees

July 06, 2023 (MLN): The federal government has decided to increase the pension of government employees by 17.5% with effect from July 1, 2023, said a notification issued by the Finance Division on Wednesday. 

"The President has been pleased to sanction an increase @ 17.5% of net pension with effect from 1 July 2023 until further orders to all Civil Pensioners of the Federal Government including Civilians paid from Defence Estimates as well as retired Armed Forces Personnel and Civil Armed Forces Personnel," the notification reads. 

This increase in pension will also be admissible to pensioners who would retire on or after July 01, 2023.

For the purpose of admissibility of an increase in pension sanctioned in this O.M. the term "Net Pension" means "Pension being drawn" minus "Medical Allowance".

The increase will also be admissible on a family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.

If the gross pension sanctioned by the federal government is shared with any government in accordance with the rules laid down in Part-IV of Appendix III to the Accounts Code, Volume-l, the amount of the increase in pension will be apportioned between the federal government and the other government concerned on a proportionate basis, it further added. 

The increase in pension sanctioned in this O.M. will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and monetized value of a driver or an orderly.

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