The federal government has announced a 17.5 percent rise in pensions for federal government retirees.
The Finance Division issued a notification stating that the President has sanctioned a 17.5 percent increase in net pension with effect from July 1, 2023, until further orders to all federal government civil pensioners, including civilians paid from Defense Estimates, retired Armed Forces Personnel, and Civil Armed Forces Personnel.
The 17.5 percent pension increase indicated in para-1 above will also be available to pensioners who retire on or after July 1, 2023. The phrase “net pension” implies “pension being drawn” minus “medical allowance” for the acceptability of the pension increase sanctioned in this O.M.
The increase will also apply to family pensions provided under the Pension-cum-Gratuity Scheme of 1954, the Liberalized Pension Rules of 1977, pensions sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules, and Compassionate Allowance granted under CSR-353.
If the federal government’s gross pension is shared with another government by the rules outlined in Part IV of Appendix III to the Accounts Code, Volume I, the amount of the increase in pension will be divided proportionally between the federal government and the other government.
The pension increase authorized in this O.M. will not be receivable on Special Additional Pension granted in place of pre-retirement Orderly Allowance and monetized value of a driver or an orderly, according to the announcement.