In the Punjab Budget 2025–26, the provincial government has announced a 15% increase in pensions for retired government employees. This decision is part of Chief Minister Maryam Nawaz’s vision to support elderly and low-income pensioners during high inflation. The pension raise will apply from 1st July 2025 to all retired workers of the Punjab government. This article explains the increase, eligibility, how it affects monthly pensions, and what other benefits are included for retired public servants.
| Key Information | Details |
| Pension Increase Percentage | 15% increase on current monthly pension |
| Effective Date | 1st July 2025 |
| Beneficiaries | All retired Punjab Government employees |
| Announced By | Punjab Finance Minister, Budget 2025–26 |
Pension Increase Announced in Punjab Budget 2025–26
On 13th June 2025, the Punjab Finance Minister officially announced that all retired employees of the provincial government will get a 15% pension increase. This increment comes as part of the 2025–26 financial budget and is aimed at helping retired people handle the effects of inflation.
This raise will be reflected in the July pension payment, which retirees will receive in August 2025. The increase applies to both civil and uniformed (retired police, army-linked staff) pensioners under Punjab’s payroll.
See also: Punjab Rozgar Scheme
Who is Eligible for the Pension Increase?
The pension increase will benefit all retired employees of the Punjab Government, regardless of their grade or department. The increase applies automatically to those who are already receiving a monthly pension.
Eligible groups include:
- Retired teachers and education staff
- Former police, patwaris, and revenue officials
- Ex-healthcare workers (doctors, nurses, LHWs)
- Retired clerks, peons, and administrative officers
- Widows or families receiving a deceased employee’s pension
No separate application is needed. The raise will be automatically added to the pension record in July 2025
See also: BISP Camp Payments June 12 Update
How Much Will Retired Employees Receive Now?
With a 15% increase, all existing pensions will rise from July 1, 2025. Here are examples of how this increase will affect different pension amounts:
- Rs 20,000 pension → Rs 23,000 (increase of Rs 3,000)
- Rs 30,000 pension → Rs 34,500 (increase of Rs 4,500)
- Rs 50,000 pension → Rs 57,500 (increase of Rs 7,500)
This increase will help pensioners afford daily necessities like food, electricity, transport, and medicines.
Additional Benefits for Pensioners in 2025 Budget
Besides the pension raise, the Punjab government has also announced more welfare support for senior citizens and retired employees in this year’s budget.
Key benefits include:
- Continuation of medical reimbursement schemes
- Plans to digitize pension disbursement through online banking
- Fast-track payment system for family pension claims
- Reserved seats and discounts in public transport for pensioners
- Allocation for special medical cards for senior citizens in 2025–26
These measures show that the government is trying to improve the lives of retired citizens.
Why Was the Pension Increase Necessary?
The decision to increase pensions was based on the rising cost of living and feedback from the retired community. Many senior citizens depend solely on pensions for survival. Prices of electricity, medicine, groceries, and transport have gone up sharply in 2024–25.
The Punjab government recognized that without an increase, pensioners would struggle to manage daily expenses, especially those who retired from lower grades.
The 15% raise ensures more financial protection for senior citizens, in line with welfare goals of the new provincial leadership.
Conclusion
The Punjab Government’s 15% pension increase in the 2025–26 budget is a major step to support retired employees. It will help them handle inflation, maintain dignity, and live more comfortably. No application is required — the amount will be adjusted automatically from July 2025. The government has also promised better healthcare, faster claims, and improved support for elderly citizens. This budget proves that pensioners are still valued and protected by the state.
FAQs
1. When will the 15% pension increase start?
It will be effective from 1st July 2025 and will reflect in the August payment.
2. Do widows or family pensioners also get this increase?
Yes, all family pension recipients will also receive the 15% increase.
3. Is any form needed to get the pension raise?
No. The pension increase is automatic and no form is required.
4. Will this increase apply to federal pensioners too?
No. This increase is only for Punjab government pensioners. Federal employees will follow their own budget.