In this article I am going to explain the finance department’s important notification of pension increase for elderly pensioners. If you are a federal government pensioner or have elderly parents who are eighty five plus, there’s an important notification from the Finance Division that many people still don’t know about, even though it directly affects pension amounts for senior citizens aged 85 and above.
According to an Office Memorandum issued by the Finance Division (Regulations Wing) Government of Pakistan, dated 26th September 2016 (No. F.4(1)-Reg.6/2016-1082), the competent authority approved a special enhancement in pension for a specific category of pensioners.
The memo partially modifies an earlier order (O.M. No. F.4(1)-Reg.6/2016-870, dated 1st July 2016) and extends a 25% increase in pension — instead of the standard 10% — to pensioners who attain the age of 85 years on or after 1st July 2016.
In simple words, most federal pensioners at that time received a 10% pension increase, this notification specifically benefits those pensioners who reach 85 years of age from July 1, 2016 onward. For this group, the increase was raised from 10% to 25%.
Why This Notification Matters
Pakistan’s federal pension system has historically included age-based increases for senior pensioners, recognizing that older retirees often face higher medical and living expenses. This particular order shows that the government revised its original 10% figure upward specifically for the 85+ age bracket, acknowledging that this age group needed additional financial relief.
For families with elderly parents or grandparents who are federal government pensioners, this is worth checking — because pension increases like this are sometimes not automatically reflected unless the pensioner or their family raises the matter with the relevant Accounts Office.
Who Was Eligible
Based on the notification, the eligibility criteria are:
1. The pensioner must be a federal government pensioner (this order applies to pensioners governed by the Finance Division, not provincial pension rules).
2. The pensioner must attain the age of 85 years on or after 1st July 2016.
3. Pensioners who had already crossed 85 years before this date would fall under the earlier order (O.M. dated 1st July 2016) and its original terms — this September notification specifically extends the higher 25% rate to those turning 85 after the cutoff.
What Pensioners and Families Should Do?
If you or a family member is a federal pensioner who turned (or will turn) 85 on or after July 2016, it’s worth verifying with your Accounts Officer or the AGPR (Accountant General Pakistan Revenues) office whether this 25% increase has been correctly applied to the pension. Since this is an older notification (2016), it should already be reflected in current pension calculations, but discrepancies do happen — especially for pensioners who weren’t aware such a benefit existed.
Key Details from the Document
Steps to verify:
• Check your latest Pension Payment Order (PPO) or pension slip for the applied percentage increase.
• Compare your pension amount against the base pension plus 25% (if applicable) rather than 10%.
• If there’s a mismatch, raise a written query with your concerned Accounts Office, referencing this O.M. number: F.4(1)-Reg.6/2016-1082.
A Word of Caution
This notification is from 2016 and reflects the pension policy applicable at that time. Since then, multiple budget-related pension increases have been announced in subsequent years, which are added on top of the base pension separately. This particular 25% provision relates specifically to the age-based enhancement for pensioners crossing 85 years, and should not be confused with the general annual pension increases announced in federal budgets.
For the most accurate, up-to-date confirmation of how this applies to an individual case, pensioners are advised to consult their respective Accounts Office or the Finance Division directly, as implementation details can vary by department and pension case.
This article is based on an official Finance Division notification and is intended for general informational purposes. For case-specific queries, please contact your relevant Accounts Office or the AGPR.