Finance Division Notifies Increase in Pension by 17.50%

Finance Division Notifies Increase in Pension by 17.50%

In a significant development, the Finance Division has issued a notification on Wednesday, July 5, 2023, announcing a substantial increase in the pension of government employees.

The pension will be raised by 17.50 percent, aiming to provide financial relief to retired civil servants and armed forces personnel.

The notification states that the President has given approval for a 17.5% increment in the net pension, effective from July 1, 2023, until further notice. This increase will be applicable to all Civil Pensioners of the Federal Government, including civilians paid from Defense Estimates, retired Armed Forces Personnel, and Civil Armed Forces Personnel.

Notably, the enhanced pension will also be extended to individuals retiring on or after July 1, 2023, ensuring that future retirees can also benefit from this progressive measure.

To determine the admissibility of the increased pension outlined in the notification, “Net Pension” has been defined as the pension being drawn minus the “Medical Allowance.” This calculation ensures a fair assessment of the pension raise for eligible individuals.

Moreover, the increase in pension will also apply to family pensions granted under various schemes such as the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, the Central Civil Services (Extra Ordinary Pension) Rules, and the Compassionate Allowance under CSR-353. This inclusivity aims to support families who rely on the pension system.

In cases where the gross pension sanctioned by the Federal Government is shared with another government entity, the increased pension amount will be apportioned proportionately between the Federal Government and the relevant government in accordance with established rules.

However, it is important to note that the pension increase sanctioned through this notification will not be applicable to the Special Additional Pension granted in lieu of pre-retirement Orderly Allowance and the monetized value of a driver or an orderly.

This timely increase in pension will alleviate the financial burdens faced by retired government employees, providing them with improved financial security and a higher quality of life.

The Finance Division’s notification signifies the government’s commitment to the welfare of its retired employees, acknowledging their dedicated service and aiming to ensure their well-being during their post-retirement years.

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