The federal government has confirmed a pension increase for govt employees, effective July 1, 2025. According to the Finance Division, federal pensioners will receive a 7% increase in their pensions.
For employees retiring on or after July 1, 2025, the baseline net pension—calculated as gross pension minus commuted portion—will also include the combined value of five previous ad-hoc relief allowances (2011: 15%, 2015: 7.5%, 2022: 15%, 2023: 17.5%, 2024: 15%). This adjustment brings the cumulative impact for new retirees to up to 70%.
In addition, EOBI pensions were raised by 15% from January 1, 2025, funded from EOBI resources.
Pension Increase in Sindh for 2025–26
In the Sindh Government budget for 2025–26, pensions for retired provincial employees have been increased by 8%.
How Much Pension Government Employees Get
The pension amount varies based on Basic Pay Scale (BPS), last drawn basic pay, total years of service, and applicable allowances. No single amount applies across federal and provincial levels.
Pension Calculation Formula
The general pension calculation formula used in government departments is:
Gross Pension = Basic Pay × Service Years (max 30) × (70 / 3000)
- Ordinary Pension = 65% of Gross Pension
- Commutation (lump sum) = 35% × Gross Pension × 12 × Age Rate
Pension Calculator Sindh Government & Federal Online Tools
For exact figures, retired employees can use the Pension Calculator Sindh Government provided through provincial accounting offices.
On the AGPR portal, the Online Pension Calculator Federal Government Pakistan is accessible to federal retirees: they can enter their BPS, basic pay, allowances, and service years to calculate gross pension, the commuted proportion and net pension.
Digital Pension Calculator Access
There are also mobile app based (e.g. Pension Calculator Pakistan, Android) and web-based (e.g. S2e web-based pension calculator) digital pension calculator tools to get the quick estimates.
