The Federal Government Notifies Pension Increase of 17.5%

The federal government has officially announced a 17.5 percent increase in pension for pensioners of the federal government. The Finance Division issued a notification stating that the President has approved the increase, which will be effective from July 1, 2023, until further notice. This increase applies to all civil pensioners of the federal government, including civilians paid from Defense Estimates, as well as retired armed forces personnel and civil armed forces personnel.

The 17.5 percent increase in pension will also be applicable to pensioners who retire on or after July 1, 2023. The term “net pension” mentioned in the notification refers to the pension being drawn minus the medical allowance.

The increase in pension will also be granted to family pensioners under various pension schemes, such as the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, Central Civil Services (Extra Ordinary Pension) Rules, and Compassionate Allowance under CSR-353.

Also Read: Xiaomi’s First Electric Car is Near its Global Release.

If the gross pension sanctioned by the federal government is shared with any other government in accordance with the rules, the increase in pension will be divided proportionally between the federal government and the other government concerned.

However, the notification clarifies that the increase in pension will not apply to special additional pension granted in lieu of pre-retirement orderly allowance and the monetized value of a driver or an orderly.