PESHAWAR, Khyber Pakhtunkhwa: The KP pension increase grants eligible provincial government pensioners a 7% rise in net pension with effect from July 1, 2026, according to a Finance Department notification.
The increase will be calculated on the net pension payable on June 30, 2026. People retiring on or after July 1 will also receive the benefit under the applicable pension rules.
The notification extends the increase to family pensions, extraordinary pensions and compassionate allowances. It does not apply to special additional pensions.
Eligible provincial pensioners living outside Pakistan may also receive the increase, subject to the prescribed terms and conditions. The Finance Department issued the notification on July 22. This followed the provincial budget, which proposed a 7% rise for employees and pensioners.
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Separately, the Punjab government has removed a 10-year limit on family pensions for eligible widows and unmarried daughters of deceased government employees. The Finance Department restored lifetime payments. However, a widow’s entitlement will end if she remarries.
Where a deceased Punjab government employee leaves more than one widow, the family pension will be divided equally among them under the revised rules.
