The government has issued a notification announcing a 17.5 per cent increase in the pension for federal government pensioners. The increase, sanctioned by the President, will be effective from 18th July 2023 until further orders. It applies to all civil pensioners of the federal government, including civilians paid from Defence Estimates, as well as retired armed forces personnel and civil armed forces personnel.

The 17.5 per cent increase in pension will also be applicable to pensioners who retire on or after 1st July 2023. To determine the eligibility for the increase in pension as sanctioned in this notification, “Net Pension” refers to the pension being drawn minus the Medical Allowance.

In addition, the increase will be granted to family pensioners 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, as well as the Compassionate Allowance under CSR-353.

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If the gross pension sanctioned by the federal government is shared with another government in accordance with the rules stated in Part-IV of Appendix-III to the Accounts Code, Volume-I, the increase in pension will be divided proportionately between the federal government and the other government concerned.

However, the increase in pension as sanctioned in this notification will not be applicable to the special additional pension granted in place of pre-retirement orderly allowance and the monetized value of a driver or an orderly.