Pension increase 2026: what the federal, Punjab, Sindh, KP and Balochistan governments actually granted

Every July the budget speeches in Pakistan announce a pension increase and every August pensioners compare notes, because the percentage in the speech and the rupees on the slip never seem to agree. They do agree; the trouble is that “seven per cent” is seven per cent of different things in different governments, granted to different people, from different dates. This is a plain account of what each government did for 2026, read from the orders where the orders could be found, and a worked comparison on one pension so the differences are visible in rupees. Where we could not find the order itself, the post says so rather than filling the gap. In one line: federal 7% on the baseline pension, Punjab 3.5% and not for anyone retiring after 1 July 2026, Sindh 7% of net pension including new retirees, Khyber Pakhtunkhwa 7% as reported, Balochistan 7% as announced.

Federal government: 7%, on the 2025 baseline

The Finance Division’s Office Memorandum of 29 July 2026 granted 7%. The base is the thing to understand. Since the memorandum of 1 January 2025 federal increases are no longer compounded on the pension as it stands; each is worked out on a baseline pension, so the 2025 and 2026 increases are two separate amounts sitting on the same base, not seven per cent on top of seven per cent. For someone already retired that costs a little against the old method, which is what holds the bill down. The 29 July order also names which earlier increases a person retiring on or after 1 July 2026 keeps, and it is a shorter list than for earlier retirees; the federal pension calculator applies the baseline method and the retirement-date rules and shows the increases as separate lines. Source: Finance Division O.M. of 29 July 2026, 7% increase (finance.gov.pk).

Punjab: 3.5%, and not for new retirees

Punjab granted 3.5%, by Finance Department order No.FD.SR-III-4-113/2026, 22.07.2026, and paragraph 2 of that order makes it not admissible to anyone retiring on or after 1 July 2026. Punjab has been on its own path since the reform of December 2024: pension on a three-year average of basic pay, later increases at half the year’s ad hoc relief allowance, and a family pension narrowed to the spouse. The lower percentage is that policy, not an oversight. The Punjab pension calculator runs the chain by department and retirement date.

Sindh: 7% of net pension, including those who retire this year

Sindh’s order of 22 July 2026 grants 7% of net pension, the pension being drawn less the medical allowance, and, as every Sindh order since 2023 has, extends it to people who retire on or after 1 July 2026 as well. That is the opposite of Punjab’s rule and the reason a Sindh retiree of August 2026 draws the 2026 increase while a Punjab retiree of the same month does not. Sindh also rewrote its pension rules in August 2025 (a 24-month average of emoluments, a baseline pension for increases, a narrower family definition and a sliding cut for voluntary retirement), and the 2026 order still defines its percentage on the pension being drawn, which is how the Sindh pension calculator applies it. Source: the 22 July 2026 order, a copy hosted by a third party; the Finance Department’s own site lists the rule amendments but not this order, so the copy is what we read.

Khyber Pakhtunkhwa: 7%, reported

KP’s 2026 increase is 7% of net pension as at 30 June 2026, as reported (ProPakistani, 23 July 2026). We did not find the notification on the Finance Department’s site when the data was last checked, so the KP pension calculator carries the figure with that note and will be updated when the order is read. KP otherwise follows the Accountant General KP’s method: pension on last pay drawn, each increase on net pension, and the 2011 and 2015 to 2021 increases stopped for anyone retiring after 30 June 2022, which is AG practice rather than the text of any order and which the calculator shows both ways.

Balochistan, Gilgit-Baltistan, Azad Kashmir: announced, not yet read

Balochistan’s budget for 2026-27 announced 7%, and a budget announcement is not an order. No notification text was found, so the Balochistan calculator keeps 2016 onwards as figures you enter from your own pension payment order, with the announced percentage shown but not applied. Gilgit-Baltistan and Azad Jammu and Kashmir publish nothing reachable: GB’s Finance Department site lists no pension order, and the AG AJK’s most recent notice to pensioners (October 2026) is about biometric life certificates, not rates. Both calculators work the common formula and take the increases from you, and say so.

The same pension, five governments

Take a pensioner drawing a net pension of Rs 50,000 a month on 30 June 2026, retired some years ago. The 2026 increase alone, before any other rule, comes to:

The rupee column is the part people compare, and it understates the real difference. What separates two pensioners with the same service is the chain behind this year’s figure: Sindh’s memorandum of 13 July 2022 replaced the eight increases of 2011 and 2015 to 2021 with one 63.5% step for anyone retiring from 1 July 2022; the AG KP calculator stops the same eight for KP retirements after 30 June 2022; the federal baseline method freezes the base from 2025; Punjab’s reform re-based the pension itself. On the Sindh page’s own example, a BPS-17 officer on Rs 100,000 basic pay with 30 years’ service, retiring on 30 June 2026 and commuting 35%, the federal rules give Rs 111,020 a month and the Sindh rules Rs 127,539, a gap of 13% on identical facts, worked by the same formula each calculator runs. That is the arithmetic the jurisdiction calculators exist to do.

EOBI pensioners

The EOBI pension is a different scheme, for private-sector workers, and its minimum is set by notification rather than by the annual percentage round. EOBI’s site lists the minimum at Rs 11,500 a month from January 2025; nothing later had been notified when the data was last checked, so a 2026 increase for EOBI pensioners is not a figure we can give. The EOBI pension calculator works the pension from the insurable wage and years of contribution and applies the listed minimum.

What to check on your own slip

Three things. Which base the percentage was applied to: gross, net of medical allowance, or a frozen baseline. Whether your retirement date is on the right side of the order’s cut-off, especially in Punjab and Sindh where the rules run in opposite directions. And whether earlier increases you expected to keep are still listed; the federal order of 29 July 2026 is explicit about that for new retirees, and a pension payment order is the document to compare it with. If the figures in a calculator here do not match your slip, the slip is right and the calculator is the one that needs to learn why; the contact page is the way to tell us.

Percentages and dates in this post are read from the orders and announcements listed on each jurisdiction’s calculator page, which name the memorandum numbers and link the documents. Where the order was not found the post says “reported” or “announced”. The data was last checked on 28 October 2026.