The federal government has approved a significant pension relief package for employees retiring after July 2025, ensuring an equal pension increase for all federal pensioners. The decision, announced through a Ministry of Finance memorandum, standardises pension benefits by integrating five previously granted ad-hoc relief allowances into regular pension payments.
According to the memorandum, the five allowances — introduced between 2011 and 2024 — collectively amount to a 70% increase. These include a 15% hike in 2011, 7.5% in 2015, 15% in 2022, 17.5% in 2023, and 15% in 2024.
The finance ministry clarified that the baseline for calculating pensions will be the net pension amount. The gross pension, after deducting the commuted portion, will now incorporate the combined value of these ad-hoc reliefs.
Officials said this decision will streamline pension structures, remove disparities, and ensure fairness for future retirees, while providing long-term financial clarity for pensioners.
