ISLAMABAD – The Ministry of Finance has decided to increase pensions in accordance with the inflation rate in the country in order to provide them relief.
Reports said the increase in pensions of the retired federal employees will be set at 80% of the annual inflation rate.
The federal government has decided to implement the recommendations of the Pay and Pension Commission, which means that pensions will be adjusted based on the annual inflation rate.
In Budget 2024-25, the federal government approved a 15% increase in pensions of the retired employees.
Earlier this week, the federal government revised the pension rules to alleviate the growing burden of pension payments on the national exchequer as it has set a 10-year period for family pensions after the death of retired employees.
The first office memorandum states that the duration of special family pensions for martyrs has been set at 25 years. However, if the deceased pensioner’s family includes a disabled or special child, the family pension will be for life.
The memorandum further explains that there will be an increase of up to 50% in family pensions for the Armed Forces and Civil Armed Forces. This increase will apply to the last pension amount received by the pensioner and will be applicable to all ranks. This increase will be transferable to all eligible heirs without any minimum or maximum limits, it said.
Pension period for families of deceased federal employees fixed at 10 years
