The Finance Division has issued an official memorandum notifying a 7 percent increase in net pensions for all civil pensioners of the Federal Government, effective July 1, 2025.
This adjustment will apply to civilians paid from Defense Estimates as well as retired personnel of the Armed Forces and Civil Armed Forces.
According to the memorandum, the President has approved the 7 percent increase, which will also be granted to individuals retiring on or after 1 July 2025. The raise extends to family pensions awarded under the Pension-cum-Gratuity Scheme of 1954, the Liberalized Pension Rules of 1977 (as amended), pensions under the Federal Civil Services (Extraordinary Pension) Rules, and compassionate allowances under CSR-353.
For this purpose, “net pension” is defined as the pension amount drawn as of 30 June 2025, excluding the medical allowance. This figure will serve as the baseline for calculating this and any future increases.
The additional pension will be maintained as a separate component, in line with Finance Division O.M. No. 9(3)R-6/2024-403 dated 1 January 2025. Where pensions are shared between the Federal Government and another government as per Part-IV of Appendix-III to the Accounts Code, Volume I, the increase will be apportioned proportionately.
The memorandum further clarifies that this increase will not apply to Special Additional Pensions granted in lieu of pre-retirement Orderly Allowance or the monetized value of a driver or orderly.
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