Punjab Pension Increase 2026: 3.5% Notification and Eligibility
Punjab grants a 3.5% pension increase from 1 July 2026. Read the 22 July notification, eligibility rules, medical allowance exclusion and calculation example.
By Khyrat Hussain · · Updated 16 October 2026
- Jurisdiction
- Punjab
- Department
- Finance Department
- Document type
- Notification
- Issuing authority
- Finance Department, Government of the Punjab
- Reference number
- FD.SR-III-4-113/2026
- Original issue date
- 2026-07-22
- Effective date
- 2026-07-01
Key points
- Increase of 3.5% in eligible net pension.
- Effective from 1 July 2026, until further orders.
- Pensioners retiring on or after 1 July 2026 are excluded.
- Medical allowance is excluded from the calculation base.
- Specified family pensions and other categories are covered under paragraph 4.
- Special Additional Pension in lieu of pre-retirement Orderly Allowance is excluded.
- Paragraph 7 sets conditions for eligible pensioners residing abroad.
The Finance Department, Government of the Punjab, has issued a circular granting a 3.5% increase in net pension from 1 July 2026, until further orders, for eligible existing civil pensioners.
The circular is dated 22 July 2026 and bears reference FD.SR-III-4-113/2026.
1.Who Is Eligible for the Punjab Pension Increase?
The increase applies to existing Punjab Government civil pensioners covered by the circular. Pensioners retiring on or after 1 July 2026 are expressly excluded from this particular increase.
The circular also extends the increase to family pensions under the Pension-cum-Gratuity Scheme, 1954 and Liberalized Pension Rules, 1977, pensions sanctioned under the Punjab Civil Services Pension Rules, and Compassionate Allowance, subject to its terms.
2.How Is the 3.5% Increase Calculated?
For this circular, net pension means pension being drawn minus medical allowance. The increase is calculated on that eligible amount.
Monthly increase = eligible net pension × 3.5%
For example:
Calculation | Amount |
|---|---|
Eligible net pension, excluding medical allowance | Rs 50,000 |
Increase: Rs 50,000 × 3.5% | Rs 1,750 |
Revised pension amount, excluding medical allowance | Rs 51,750 |
Medical allowance is excluded from the calculation base for this increase.
3.Other Conditions and Exclusions
The increase does not apply to Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance.
Where pension is shared between Punjab and another government under the rules cited in the circular, the increase is apportioned proportionately.
Paragraph 7 also covers eligible Punjab civil pensioners residing abroad, excluding those residing in India and Bangladesh. It specifies retirement on or after 15 August 1947 and conditions concerning entitlement to, or receipt of, increases under the British Government’s Pension (Increase) Acts. Payment is made at the applicable exchange rate.
4.View the Complete Notification
Read both pages of the attached circular for the complete eligibility conditions, exclusions and circulation details.
Notification number: FD.SR-III-4-113/2026
Issue date: 22 July 2026
Effective date: 1 July 2026
5.Estimate Your Punjab Pension and Retirement Benefits
Punjab Government employees planning retirement on or after 1 July 2026 can use our Punjab Pension Calculator to estimate monthly pension, commutation and gratuity based on their service and pensionable pay. The 3.5% increase discussed in this notification applies to eligible existing pensioners who retired before 1 July 2026.
Who this applies to
Eligible existing Punjab Government civil pensioners who retired before 1 July 2026, together with family pensions and other categories covered by paragraph 4, subject to the circular’s conditions. Additional conditions for eligible pensioners residing abroad appear in paragraph 7.
Important dates
- Pension increase effective:
- Retirement exclusion begins:
- Circular issued:
Official sources
Finance Department, Government of the Punjab
Related calculators and reading
- Pakistan Government Pay Fixation Calculator 2026
- Punjab Leave Encashment Calculator 2026
- Punjab TA/DA Calculator 2026
- Punjab Pension Calculator
- Revised Basic Pay Scale Chart 2026 Pakistan – Calculate Your BPS Stage & Basic Pay
- Voluntary Retirement in Punjab Government 2026: Age, Service, Pension & Latest Rules
- Punjab Government Employee Retirement Planning 2026: Pension, Retirement Date & Checklist
- Revision of 30% Social Security Benefit (SSB) in Lieu of Pension for Contract Employees After Basic Pay Scales 2026
- Federal Government Revises Assistance Package for Families of Employees Who Die in Service
- REVISION OF BASIC PAY SCALES AND ALLOWANCES OF CIVIL SERVANTS OF THE PUNJAB GOVERNMENT
Frequently asked questions
What is the Punjab pension increase announced in this 2026 circular?
It grants a 3.5% increase in eligible net pension from 1 July 2026, until further orders.
Does it apply to someone retiring on 1 July 2026?
No. Paragraph 2 excludes pensioners retiring on or after 1 July 2026.
Is medical allowance included when calculating the increase?
No. For this circular, net pension means pension being drawn minus medical allowance.
Does the increase cover family pension?
Yes. Paragraph 4 covers specified family-pension schemes and other listed pension categories, subject to the circular’s terms.
How much is the increase on Rs 50,000 net pension?
On an eligible net pension of Rs 50,000 excluding medical allowance, the increase is Rs 1,750 per month.