Government increases pension by 7% from July 1

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has approved a 7% increase in the net pension of all provincial government pensioners, according to an official notification issued on Thursday.

The notification states that the increase will be calculated on the basis of the net pension being drawn as of June 30, 2026, and will take effect from July 1, 2026.

The revised pension will also apply to government employees retiring on or after July 1, 2026, in accordance with the prescribed rules.

According to the notification, the 7% increase will also be applicable to family pension and compassionate allowance cases. However, it will not apply to any special additional pension.

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The notification further states that eligible pensioners residing abroad will also receive the increase, subject to the applicable terms and conditions.

The latest decision follows a series of pension-related reforms introduced by provincial governments across Pakistan.

Earlier, the Punjab government restored lifetime family pension benefits for the widows and unmarried daughters of deceased government employees, reversing an earlier policy that had limited the payments to 10 years.

The decision was approved during a Punjab cabinet meeting chaired by Chief Minister Maryam Nawaz.

Under the amended regulations, widows and unmarried daughters of deceased government employees will remain eligible to receive the family pension for life. However, a widow’s pension will cease upon remarriage.

The notification also states that if a deceased government employee leaves behind more than one widow, the family pension will be divided equally among them.