In the Punjab Budget 2025–26, the government has announced a pension increase for retired government employees. This decision was made to help pensioners manage rising inflation and meet basic needs. Chief Minister Maryam Nawaz Sharif’s government has taken special care of retired individuals who served the province for many years. The new pension policy includes percentage increases, special relief allowances, and medical support. In this article, we explain the full details of the Punjab pension increase 2025.
Key Detail | Information |
Pension Increase Rate | 15% for retired employees |
Additional Relief | Medical & utility support allowances |
Effective Date | 1st July 2025 |
Eligible Beneficiaries | All civil, education, police, and health retirees |
15% Pension Increase Announced in Budget 2025
The Punjab Government has approved a 15% increase in monthly pensions for all retired government employees. This raise will be effective from 1st July 2025 and applies to:
- Retired teachers and education department staff
- Police and law enforcement retirees
- Health workers and paramedics
- Civil and administrative officers
This step will provide much-needed relief to thousands of retired people across Punjab who are struggling with high costs of food, medicine, and utility bills.
Read More: Benazir Women Who Received Rs. 5000

Special Allowances for Elderly and Disabled Pensioners
Apart from the 15% increase, the Punjab Government will also provide special allowances to certain categories of retired employees.
The budget includes:
- Medical allowance of Rs. 3,000 per month for pensioners over 70 years old
- Utility relief allowance for those with pension below Rs. 40,000/month
- Additional Rs. 2,000 per month for disabled retirees
These benefits will be transferred through the pension bank account or designated treasury starting from July.
How Will the New Pension Be Paid?
The revised pensions will be automatically adjusted in the pension payment system. Retired employees do not need to apply or submit forms to receive the new amount.
Payment will be issued through:
- Bank account linked with pension ID
- Post office or treasury branches, depending on current system
- SMS notifications or bank alerts for confirmation
Those who do not receive the updated pension by 20th July should contact their district accounts office.
Read More: BISP Kafalat Program 2025 Payment Increased
Who Is Eligible for Pension Increase in 2025?
The new pension policy covers all government employees who have retired under the Punjab Civil Service Pension Rules.
This includes:
- Pensioners retired before or in 2025
- Widows or family members receiving family pensions
- Ex-servicemen employed in Punjab departments
- Grade 1 to 22 retired civil servants
No need to re-register or update information unless your bank details have changed.
Read More: BISP PMT Score Check CNIC 2025
Government’s Future Plans for Retired Employees
CM Maryam Nawaz also announced the formation of a Pensioners Welfare Board to take care of retired employees’ health and income needs.
Planned steps include:
- Free medical checkups at district hospitals
- Discounted medicines and diagnostic tests
- Senior citizen cards for travel and shopping discounts
- Helpline for pension-related issues and complaints
This is part of the government’s long-term welfare policy for senior citizens and former public servants.
Conclusion
The Punjab Government’s decision to increase pensions by 15% in the 2025–26 budget is a major step for the well-being of retired employees. Combined with medical and utility relief, this increase will support thousands of senior citizens in meeting their daily needs. The government has shown that it values the service of its retired workforce and is committed to improving their quality of life.
Read More: Benazir Phase 1 Payments Started for Eligible Women
FAQs
1. When will the increased pension be paid?
The new pension amount will be paid from 1st July 2025 onwards with regular monthly pensions.
2. Is there a need to apply for the 15% increase?
No, all eligible retirees will automatically receive the new amount.
3. Who gets the medical and utility allowances?
Retired employees who are above 70 years or disabled will get additional support as per policy.
4. Where can I contact for pension payment issues?
You can contact your District Accounts Office or visit the Finance Department’s website for help.