KP Government Increases Pension by 7% from July 1, 2026; Notification Issued

The Khyber Pakhtunkhwa (KP) government has announced a 7% increase in pensions for provincial government pensioners, providing financial relief to thousands of retired employees across the province. The increase comes after the recent salary hike for government employees and will take effect from July 1, 2026.

The KP Finance Department has released an official notification regarding the provincial government’s decision to increase net pension for all eligible provincial government pensioners by 7%.

According to the notification, the new pension will be based on the net pension received on June 30, 2026. The 7% pension increase will be available for government employees who are retiring after July 1, 2026.

7% Pension Increase Also Applies to Family Pension

The notification also confirms that the pension increase will also cover family pensions and compassionate allowance cases. Eligible provincial government pensioners living outside of Canada will also receive the benefit, as per the rules and regulations.

The government added, however, that the 7% hike won’t apply to any existing Special Additional Pension that is currently being paid out.

Relief for Retired Government Employees

The recent judgment is likely to deliver some long-overdue financial assistance to pensioners and eligible family members of public servants struggling to keep up with the inflationary and escalating cost of living crisis. The hike in pension comes shortly after the government announced a hike in public sector officials’ pay.

The revised pension rates are now activated from July 1, 2026, with the release of the official notification, and eligible pensioners can now receive the new pension.