Islamabad September 8 2023: The Ministry of Overseas Pakistanis and Human Resource Development has increased the minimum pension from PKR 8,500 to PKR 10,000 per month for the retired senior citizens to facilitate them in the prevailing economic crisis.
The ministry had made the directions on Friday in exercise of the powers conferred by Sub-Section (a) of Section-2 of the Employees Old Age Benefits Act, 1976, increased the minimum pension from PKR 8,500 per month to PKR 10,000 per month along with 17 percent increase in formula pension to the existing pensioners that would be in effect from July 1.
The Ministry had issued instructions to implement the order to process the increase in the rate of the existing pensioners and the pending pension.
All pensioners drawing minimum pension of PKR 8500 would be allowed minimum pension PKR 10,000, with effect from July, 2023.
Moreover, the pensioners drawing formula pension as on June 30 would be allowed 17 percent in their existing rate of pension with effect from July, 2023. It also underlined that the 17 percent increase in rate would be applied only on pensioners awarded pension till June 30, 2023.
The formula pension awarded with effect from July, 2023 would not be allowed increase in rate of pension. However, such pensioners would be allowed formula pension as per schedule. It also underlined that the pension allowed from July, 23 would be treated as normal with regards to minimum pension of PKR 10,000 and formula pension 17 percent increase in rate would be applied only to pensioners who were awarded pension till 2023.
The pensioners drawing reduced pension would be allowed pension reduced by one half per cent for each completed month by which age falls short of 60 years (55 years in case of woman) for minimum pension i.e. PKR 10,000.
All reduced formula pensions settled on June 30, 2023 would be allowed 17 percent increase in their existing rate of pension, it added.
